A Pennsylvania-based law firm filed a shareholder class-action lawsuit against China-based Qudian Inc. for allegedly engaging in unethical business and accounting practices, as well as its failure to ensure protection of user's personal information.
Kessler Topaz Meltzer & Check LLP filed the lawsuit on behalf of investors who purchased the Chinese microlender's securities between Oct. 18 and Nov. 20. The microlender's shares began trading on the New York Stock Exchange after its IPO.
According to the lawsuit, Qudian's IPO documents were negligently prepared, contained false statements of material facts and were not prepared in accordance with rules. Further, the lawsuit alleges the documents failed to disclose that the company engaged in unethical practices, failed to ensure protection of users' data and exposed the data to leakages and online resale.
It is the second class-action lawsuit filed against Qudian in December. Earlier, Faruqi & Faruqi LLP filed a similar lawsuit in New York against the microlender over alleged rule violations.