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Overview of the Lawsuit Against Lufax Holding Ltd.

On April 21, 2026, a securities class action lawsuit was initiated against Lufax Holding Ltd. (NYSE: LU). The lawsuit aims to represent investors who acquired Lufax securities during the period from April 7, 2023, to January 26, 2025. This legal action has become pivotal following recent developments at Lufax, including the announcement that its auditor was removed amid alarming disclosures regarding undisclosed related-party transactions.

This decision by Lufax triggered a dramatic reaction within the stock market, resulting in a nearly 14% drop in the price of its American Depositary Shares. The implication of these events has led Hagens Berman, a renowned national shareholder rights law firm, to investigate claims suggesting that Lufax breached federal securities laws.

Background on Lufax's Financial Practices

Lufax markets itself as a significant financial services facilitator for small business owners in China. The company has consistently assured its investors that its financial statements were crafted in adherence to the relevant accounting standards and that its internal financial controls were robust.

However, the class-action complaint alleges that this was not the case. According to the charges, Lufax lacked sufficient internal controls and that many of its reported financial results were significantly misrepresented.

The Auditor's Discontent

The situation escalated on January 27, 2025, when Lufax disclosed that it had dismissed its auditor, PricewaterhouseCoopers (PwC). According to internal communications, PwC warned Lufax of its concerns surrounding undisclosed related-party transactions, which, they believed, warranted an independent investigation. This abrupt termination raised numerous eyebrows, particularly because it followed less than six months after the reappointment of PwC by the company's Audit Committee.

In a significant report, PwC stated that they could no longer rely on Lufax's representations regarding its 2022 and 2023 financial statements, thus advising stakeholders that previous audits should not be trusted. This move provoked a sharp decline in the value of Lufax shares, highlighting the severity of the implications linked with the allegations.

Subsequent Revelations and Investor Response

Following the revelations regarding the auditor’s concerns, on April 23, 2025, Lufax made further disclosures, revealing complex transactions that took place as it acted as the sole investor in various trusts between May 2023 and June 2024. These transactions involved acquiring assets from entities linked to Lufax, which the company acknowledged had resulted in significant overstatements on their balance sheet for both assets and liabilities since the latter part of 2023.

In the aftermath of these developments, Reed Kathrein, the partner at Hagens Berman overseeing the case, emphasized the firm’s commitment to investigating whether Lufax intentionally violated accepted accounting practices and transparency regulations regarding its transactions with related parties.

If you are a Lufax investor who has faced substantial losses or have information that may assist in the ongoing investigation, you are strongly encouraged to reach out and submit relevant details.

Whistleblower Opportunities

Those with inside knowledge of Lufax may also consider their options for contributing to the investigation or taking advantage of the SEC Whistleblower program. This initiative allows whistleblowers who provide valuable information to earn rewards of up to 30% of any successful recovery by the SEC. Interested parties are advised to contact Reed Kathrein directly for more details.

About Hagens Berman

Hagens Berman is a global law firm known for fighting for corporate accountability and advocating for the rights of investors, whistleblowers, and consumers. With a track record of securing over $2.9 billion in settlements for those harmed by corporate negligence, the firm continues to stand firm in its commitment to justice. For more information about the firm, visit their official website.