SAN DIEGO & BEIJING–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that a purchaser of Jianpu Technology Inc. American Depository Shares (NYSE: JT) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 29, 2018 and February 16, 2021. Jianpu claims to be the leading independent open platform for discovery and recommendations of financial products in China.
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Jianpu Technology Inc. (JT) Misled Shareholders About Its Business, Operations, and Prospects
According to the complaint, throughout the relevant period, Jainpu failed to disclose to investors that certain of the Company’s transactions carried out by the Credit Card Recommendation Business Unit involved undisclosed relationships or lacked business substance. As a result, Jainpu’s revenue and costs and expenses for fiscal 2018 and 2019 were overstated due to material weaknesses in Jainpu’s internal control over financial reporting. Jainpu was unable to timely file its Form 20-F for the fiscal year ended December 31, 2019, and was therefore not in compliance with the listing requirements of the NYSE. The NYSE has given Jainpu until July 1, 2021, to complete and file the Company’s Annual Report on Form 20-F for year ended December 31, 2019.
On February 16, 2021, Jainpu announced the results of its review into “transactions carried out by the Credit Card Recommendation Business Unit” with third-party business entities. Jainpu 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.” Jainpu will restate its financial statements for fiscal 2018and 2019 and that “investors must exercise caution” with respect to previously reported fiscal 2019 financial information. Further, Jainpu “anticipates the total amount of overstated revenue for the fiscal years 2018 and 2019 to be approximately, RMB 90 million RMB 164 million, respectively, representing 4.5% and 10.1% of the total revenue previously reported.” On this news, Jianpu’s share price fell 13% to close at $3.94 per share on February 16, 2021.
If you purchased shares of Jainpu Technology Inc. (JT) between May 29, 2018 and February 16, 2021, you have until April 19, 2021, to ask the court to appoint you lead plaintiff for the class.
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