#USA #New York #Securities Fraud #Pomerantz Law #Yiren Digital

Pomerantz Law Firm's Investigation into Yiren Digital Ltd.

On April 2, 2026, the Pomerantz Law Firm revealed it is looking into claims from investors of Yiren Digital Ltd. (NYSE: YRD). This investigation comes on the heels of alarming financial revelations from the company, sparking concerns about possible securities fraud or other illegal business activities by Yiren and its executive team.

Yiren Digital, known for its digital financial services, reported disappointing financial results for the fourth quarter and full year, ended December 31, 2025. Specifically, the company's revenue for the fourth quarter was approximately RMB 957.6 million, which marked a staggering decline of about 34% compared to the same quarter of the previous year. This figure is substantially lower than the previously projected revenue range of RMB 1.4 billion to RMB 1.6 billion, raising further red flags for investors.

Moreover, the company disclosed a net loss of around RMB 882.2 million during this quarter, reversing from a net income of approximately RMB 331.4 million reported in the same period one year earlier. Such a drastic downturn raised concerns about Yiren's operational strategies and overall financial health.

A particularly critical factor highlighted was the sharp increase in the company's provision for contingent liabilities, which surged to roughly RMB 1.11 billion from approximately RMB 459.8 million in the previous quarter. This increase hints at deeper issues within the company's financial management and risk assessment frameworks.

Yiren also indicated deteriorating delinquency rates in various loan categories, showing significant increases in 1-30 day, 31-60 day, and 61-90 day delinquency rates. According to a statement by the company, these dismal results can be attributed to several aspects, including a reduction in service fee rates prompted by a new regulatory framework, a strategic scaling back of loan facilitation volume, and a shift towards a more high-risk asset portfolio.

The aftermath of these announcements was quite severe for the company's stock. On March 19, 2026, following the release of these results, Yiren’s American Depositary Receipt (ADR) plummeted by $1.65, or approximately 44.84%, closing at just $2.03. Such a drastic decline left many investors questioning the integrity and stability of their investments in the company.

In light of these developments, Pomerantz LLP is urging Yiren's investors to come forward and share their experiences, especially those who believe they may have been victims of securities fraud. Those affected are encouraged to reach out to Danielle Peyton at [email protected] or call 646-581-9980, ext. 7980 for further assistance and to learn more about the ongoing investigation and the steps they can take.

Established over 85 years ago, Pomerantz LLP is recognized as a leading law firm specializing in corporate, securities, and antitrust class litigation. Under the guidance of its founder, Abraham L. Pomerantz, the firm has made significant strides in advocating for victims of securities fraud, striving to reclaim losses for harmed investors. Pomerantz’s legacy and expertise position it uniquely to handle complex litigation cases, providing confidence to class members as they navigate these challenging circumstances.

Conclusion

As the investigation progresses, Yiren's investors remain hopeful for clarity and resolution amidst their financial turmoil. The developments are a stark reminder of the volatility present in the digital finance sector and highlight the importance of transparency and accountability in corporate practices.