Lufax Holdings Faces Class Action Over Alleged Securities Fraud by Executives

In a significant legal development, investors in Lufax Holding Ltd (NYSE: LU) are being alerted by Levi & Korsinsky LLP regarding an ongoing securities class action that has raised serious allegations against the company's senior officers. Named as individual defendants in this action are the Chief Executive Officer, Yong Suk Cho, and Chief Financial Officer, David Siu Kam Choy. The lawsuit stems from claims that these executives falsified Sarbanes-Oxley (SOX) certifications, leading to considerable financial overstating in annual reports.

Overview of the Allegations

The class action is rooted in the class period from April 7, 2023, to January 26, 2025, where Lufax's ADS holders reportedly experienced a substantial loss of $0.40 per share, equating to a 13.8% drop in their investments during the initial corrective disclosure. Over three trading sessions, the company's shares declined sharply from $2.89 to $2.26. The subsequent re-audit revealed that Lufax's financial statements had overstated its net profits by approximately RMB 917 million for 2022 and RMB 81.4 million for 2023.

The lawsuit’s court has set May 20, 2026, as the deadline for investors to apply for lead plaintiff appointments, marking a critical moment for those affected by these financial discrepancies.

The Named Defendants

The allegations specifically mention Yong Suk Cho, who was the CEO throughout the alleged fraudulent activities, and David Siu Kam Choy, who served as CFO until April 2024. Both executives are accused of having played a pivotal role in the crafting, reviewing, and dissemination of annual reports that are now claimed to have been misleading.

Breach of SOX Certification Obligations

Among the most serious claims is that both Cho and Choy signed SOX certifications that were officially attached to the 2022 and 2023 Annual Reports as required by regulatory standards. These certifications should have confirmed the accuracy of Lufax’s financial reporting and the effectiveness of its internal control systems and disclosure processes.

The complaint argues that the officers’ signatures on these documents misled investors as they failed to disclose critical changes to internal controls and any fraud involving executives who had significant roles in maintaining those controls. Consequently, litanies of overstatements pummeled the trust placed in Lufax’s financial integrity.