Tenet Fintech Group, Inc. f/k/a Peak Fintech Group, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Tenet Fintech Group Inc. f/k/a Peak Fintech Group Inc. (“Tenet Fintech” or the “Company”) (OTC: PKKFF, NASDAQ: TNT) securities from September 2, 2021 through October 13, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Tenet Fintech is the parent company of a group of innovative financial technology subsidiaries operating in China’s commercial lending industry.
On October 4, 2021, market researcher Grizzly Research published a report alleging discrepancies in Tenet Fintech’s business practices. The report alleged, in relevant part, that: (1) Tenet Fintech’s acquisition of Heartbeat, a Chinese insurance product management and brokerage platform, was mired in suspicious dealings, in which Tenet Fintech paid a company that was not the registered owner of Heartbeat; (2) the actual registered owner of Heartbeat reported zero revenues in 2019 and 2020; and (3) Tenet Fintech’s statements regarding Heartbeat’s growth since 2020 were not substantiated by basic facts, including the fact that Heartbeat’s website did not go live until 5 days after Tenet Fintech’s acquisition. On this news, Tenet Fintech’s stock price declined by $1.31 per share, or approximately 17.5%, from $7.50 per share to close at $6.19 per share on October 4, 2021.
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) Tenet Fintech did not own 51% of ASFC through Wuxi Aorong; (2) Tenet Fintech did not disclose its actual ownership structure of ASFC, an undisclosed and potentially problematic nominee shareholder agreement; (3) Huayan did not own the Heartbeat platform; (4) the Heartbeat platform did not exist prior to the alleged acquisition; (5) Tenet Fintech faced imminent delisting from NASDAQ due to non-compliance with known regulations; (6) the “recent disclosure guidance” was in fact published on November 23, 2020, nearly a full nine months prior to Tenet Fintech’s uplisting; (7) as such, Tenet Fintech knew or should have known that its 40-F submission was deficient; (8) Cubeler historically failed to make even minimum loan repayments to Tenet Fintech; (9) Tenet Fintech, instead of exercising its right on the assets, decided to purchase Cubeler; (10) in light of the foregoing, and in consideration of the fact that Cubeler is owned by several Tenet Fintech insiders, the Company’s acquisition of Cubeler is not based on legitimate business interests; (11) there is no evidence Huayan ever owned the Heartbeat platform or that it transferred the asset to Huike; (12) the largest ASFC shareholder had his shares frozen due to court sanctions; and (13) the creation of ASFC itself was likely a related-party transaction.