Recent Securities Litigations
Portugal Telecom SGPS, S.A . (NYSE: PT)
According to the Complaint, Pintec Technology Holdings Limited is purportedly a technology platform that enables financial services in China by connecting business partners and financial partners with users.
This is a class action on behalf of persons and entities that purchased or otherwise acquired Pintec securities pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s October 2018 initial public offering. In October 2018, Pintec completed its IPO in which it sold more than 3.7 million American Depositary Shares at $11.88 per share.
The Complaint alleges that the Registration Statement was false and misleading and omitted to state material facts. Specifically, Defendants failed to disclose to investors: (1) that the Company erroneously recorded revenue earned from certain technical service fee on a net basis, rather than a gross basis; (2) that there were material weaknesses in Pintec’s internal control over financial reporting related to cash advances outside the normal course of business to Jimu Group, a related party, and to a non-routine loan financing transaction with a third-party entity, Plutux Labs; (3) that, as a result of the foregoing, the Company’s financial results for fiscal 2017 and 2018 had been misstated; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.