Class Action against Chinese Used-Car Marketplace Uxin Proceeds
On March 9, 2020, Justice Andrew Borrok of the New York State Supreme Court denied defendant Uxin Limited’s motion to dismiss plaintiffs’ allegations that the company misled investors about its financial prospects ahead of its June 27, 2018 Initial Public Offering (“IPO”) in In re Uxin Limited Securities Litigation, No. 650509/2019 (Sup. Ct., N.Y. Co.). The complaint asserts claims under Sections 11, 12, and 15 of the Securities Act of 1933 against Uxin, certain of its senior executives and directors, and the investments banks that underwrote the IPO of the company’s American Depository Shares that trade on the Nasdaq stock exchange. These claims are premised on allegations that Uxin’s offering documents misled investors with inflated revenues and other financial metrics as it sought access to the U.S. public markets. Wolf Haldenstein serves as co-lead counsel for the investors in the litigation.
Read the March 9 Order here.