#USA #New York #Securities Class Action #Qfin Holdings #Yan Zheng

QFIN Shareholder Alert: Lead Plaintiff Deadline Approaching

Qfin Holdings, Inc. (NASDAQ: QFIN) is currently embroiled in a securities class action that has garnered significant attention from investors. With the deadline for lead plaintiffs set for November 27, 2026, the case has brought to light various aspects surrounding the company's financial disclosures and the statements made by its Chief Risk Officer, Yan Zheng, who has recently assumed the role of CEO as of September 21, 2026.

Background and Allegations

The core of the class action focuses on allegations that Qfin and its executives misled investors regarding the company's loan risk and asset quality, particularly during a challenging regulatory environment in China. Zheng, as Chief Risk Officer throughout the class period, is identified as a key figure who provided assurances about improving loan performance, despite warnings of increasing portfolio risks and deteriorating asset quality.

Declining Stock Performance

The situation escalated around August 25, 2026, when Qfin's American depositary shares experienced a sharp decline of 18.91%, dropping from $11.53 to $9.35 within a day. This occurred in the wake of disappointing forecasts that projected a staggering 67% to 73% year-over-year decline in third-quarter non-GAAP net income, raising serious questions about the credibility of the prior reassurances given by company executives.

Key Dates and Actions

• - March 18, 2026 to August 25, 2026: This time frame is crucial for investors who purchased Qfin's securities, as the lawsuit includes those who acquired shares during this period and later suffered financial losses.
• - November 27, 2026: Final date for potential lead plaintiffs to come forward to participate in the lawsuit.

The Role of Yan Zheng

Yan Zheng has been pivotal to Qfin's operations during this tumultuous time. Despite acknowledging a rise in portfolio risks, he asserted that Qfin was taking proactive steps to enhance risk management in underwriting and collections, claiming that the risk performance of new loans was on an upward trajectory. His positive outlook on asset quality, presented during earnings calls, stands at odds with the reality that other analysts noted sharply deteriorating conditions, particularly within the collection sector.

Executive Accountability

Zheng, named alongside other executives as a defendant in the lawsuit, is being held accountable under various sections of the Exchange Act, particularly regarding his statements during the class period that allegedly misled investors about the stability of asset quality. The complaints suggest that the assurances made were misleading, especially considering the escalating regulatory challenges affecting Qfin's business stability.

Investor Guidance and Next Steps

For investors who may have been affected, it is essential to gather related brokerage records that document purchase dates, quantities, and prices paid for Qfin shares. Those who sold their shares at a loss during this class period may still be eligible for recovery. To pursue a claim, investors can contact Joseph E. Levi, Esq. for an initial, no-cost evaluation of their potential recovery options.

Key Takeaway

As the lead plaintiff deadline approaches, it is vital for impacted investors to act quickly in understanding their eligibility and potential next steps. Qfin's case illustrates the importance of transparency and accountability in corporate communications, especially regarding risk disclosures in turbulent financial landscapes. Investors should remain vigilant and proactive when navigating securities class actions to safeguard their rights and potential recovery of losses.

For more information, you can reach out to Levi & Korsinsky, LLP, who specialize in shareholder rights litigation and can guide you through the process effectively.