New Federal Securities Cases
A class action lawsuit has been filed in the United States District Court for the Southern District of New York against Wins Finance Holdings, Inc. ("Wins" or the "Company") (NASDAQ:WINS) on behalf of all persons or entities that purchased or otherwise acquired Wins securities during the period from October 29, 2015 through March 29, 2017 (the "Class Period").
The lawsuit alleges that throughout the Class Period, Wins falsely stated it maintained a U.S. headquarters in order to gain inclusion on the Russell indices when, in fact, its headquarters are located in China, and that Wins management overstated its value and engaged in other market manipulations during the class period.
On December 9, 2016, SeekingAlpha.com published an article entitled "Wins Finance Holdings is Overvalued: 75% Downside" which criticized the Company's valuation and trading levels as "absurd" and noted "the management team has a track record of shareholder destruction." The article further revealed that Defendant Hao had previously been accused of market manipulation. On this news, the Company's stock price declined from $172.51 to $110.62 per share.
Shortly thereafter, on February 2, 2017, SeekingAlpha.com published a second article entitled "Potential Chinese Fraud - Wins Finance Holdings" which criticized the Company's management and their histories of involvement in past incidence of securities fraud. In reaction to the article, the Company's stock price declined from $345.00 to $309.99 per share.
This SeekingAlpha article was soon followed by a March 30, 2017 article on Bloomberg entitled "This Chinese Stock Soared 4,500% on Nasdaq and No One Knows Why." The article revealed that Wins' purported Times Square headquarters were non-existent. The article also revealed that the Company's largest shareholder, Freeman FinTech Corp., had previously been accused of and sanctioned for market manipulation. Also on March 30, 2017, SeekingAlpha published a third article entitled "Wins Finance - Active SEC Investigation and Manipulation of A Russell Index." The article explosively revealed, inter alia that: (i) a FOIA request for information on any investigations into the Company came back with a "7(a) exemption," which means that releasing any information the United States Securities and Exchange Commissions ("SEC") had collected on Wins would be expected to interfere with law enforcement proceedings; and (ii) the Company had misrepresented its U.S. headquarters to gain inclusion on the Russell indexes, and would face imminent exclusion from that index after updating its principal executive offices to China in its SEC filings. In reaction to these articles, the Wins' stock price declined from $280.60 to $144.99 per share, damaging investors.
If you acquired Wins securities during the Class Period, you may, no later than June 5, 2017, request that the court appoint you lead plaintiff of the proposed class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.
If you are a current or former Wins shareholder and wish to obtain additional information, please fill out the contact form at the link below.
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