A securities class action has been filed against Qfin Holdings, Inc. (QFIN) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Qfin securities between March 18, 2026 through August 25, 2026. This case has been filed in the USDC – EDNY.
On August 25, 2026, after the market closed, Qfin released its second quarter 2026 financial results. Among other items, the Company reported that total net revenue fell 31.6% year-over-year to RMB 3.57 billion, significantly missing consensus estimates. Furthermore, net income plummeted 76.8% year-over-year, heavily impacted by an unexpected RMB 500 million tax expense. Management also issued disappointing forward guidance, projecting a 67% to 73% year-over-year drop in Q3 non-GAAP net income due to rising funding costs and systemic liquidity shocks in the Chinese consumer credit market.
On this news, Qfin’s American Depositary Receipt (“ADR”) price fell $2.18 per ADR, or 18.91%, to close at $9.35 per ADR on August 26, 2026.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had overstated the resiliency and stability of Qfin’s business and financial results despite regulatory changes; (ii) Defendants likewise downplayed the true scope and severity of the negative impact that regulatory headwinds were likely to have, and were already having, on the Company’s business and financial results; and (iii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.