NEW YORK–(BUSINESS WIRE)–The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Jianpu Technology Inc. (“Jianpu” or the “Company”) (NYSE: JT) securities from May 29, 2018 through February 16, 2021, inclusive (the “Class Period”). Investors have until April 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
According to the lawsuit, the Company made false and misleading statements to the market. Jianpu’s Credit Card Recommendation Business Unit engaged in transactions involving undisclosed related parties or lacking in business substance. As a result, the Company’s revenues, costs, and expenses for fiscal 2018 and 2019 were overstated. The Company suffered from material weaknesses in its internal controls over financial reporting. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Jianpu, investors suffered damages.
On February 16, 2021, Jianpu announced the results of its review into “transactions carried out by the Credit Card Recommendation Business Unit” with third-party business entities. The Company concluded that previously reported revenue and associated expenses had been inflated due to “certain transactions [that] involved third-party agents (including both upstream agents and downstream suppliers) with undisclosed relationships and some transactions [that] lacked business substance.” Jianpu stated that it “anticipates the total amount of overstated revenue for the fiscal years 2018 and 2019 to be approximately, RMB 90 million and RMB 164 million, respectively, representing approximately 4.5% and 10.1% of the total revenue previously reported.” On this news, the Company’s share price fell $0.60, or 13.2%, to close at $3.94 per share on February 16, 2021, on unusually heavy trading volume.
If you purchased or otherwise acquired Jianpu securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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