SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against UP Fintech Holding Limited
WILMINGTON, DE / ACCESSWIRE / November 8, 2019 / Rigrodsky & Long, P.A.:
Do you, or did you, own American Depository Shares of UP Fintech Holding Limited (NASDAQ GS:TIGR)?
Did you purchase your shares pursuant and/or traceable to the March 20, 2019 initial public offering, or between March 20, 2019 and May 16, 2019, inclusive?
Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the American Depository Shares ("ADSs") of UP Fintech Holding Limited ("Fintech" or the "Company") (NASDAQ GS:TIGR) between March 20, 2019 and May 16, 2019, inclusive, including those investors who acquired Fintech ADSs pursuant or traceable to its initial public offering ("IPO") on March 20, 2019 (collectively, the "Class Period), alleging violations of the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased ADSs of Fintech in the March 20, 2019 offering, or during the period March 20, 2019 and May 16, 2019, inclusive, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (i) Fintech was experiencing a material decrease in commissions because of a negative trend related to risk averse investors in the market; (ii) Fintech was unable to absorb costs associated with the rapid growth of its business and its status as a publicly listed company on a U.S. exchange; (iii) Fintech was incurring significant additional expenses related to, inter alia, employee headcount and employee compensation and benefits; (iv) all of the foregoing had led to Fintech significantly increasing operating costs and expenses; and (v) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein, and the Company's Class Period statements were likewise materially false and/or misleading. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on February 22, 2019, Fintech filed a registration statement on Form F-1 with the SEC in connection with the IPO (Registration No. 333-229808), which, after several amendments, was declared effective by the SEC on March 19, 2019 (the "Registration Statement"). The Registration Statement was filed with respect to the underlying Class A ordinary shares represented by the ADSs to be sold in the IPO.
Then, on March 20, 2019, Fintech filed a prospectus for the IPO on Form 424B4 (the "Prospectus"), which incorporated and formed part of the Registration Statement (collectively, the "Offering Documents"). That same day, Fintech announced the pricing of its IPO of 13 million ADSs, each representing fifteen Class A ordinary shares of the Company, at $8.00 per ADS. The ADSs began trading the same day on the Nasdaq Global Select Market ("NASDAQ") under the symbol "TIGR." Fintech raised $104 million in proceeds from the IPO.
On May 17, 2019, during pre-market hours, Fintech issued a press release announcing its unaudited first quarter 2019 financial results-the Company's first quarterly earnings announcement following the IPO (the "1Q19 Press Release"). In that press release, Fintech disclosed a 4.1% decrease in commissions, noting that "[i]nvestors were relatively risk averse at beginning of this year which leads to moderated trading activities and a slight decrease in trading commission." The 1Q19 Press Release also disclosed, among other issues, that Fintech's operating costs and expenses and net loss attributable to the Company had begun to skyrocket as a result of increases in expenses related to employee headcount, employee compensation and benefits, and office space and leasehold improvements, as well as rapid customer growth, expanded market data usage for its customers, and additional professional expenses as a listed company.
Specifically, with respect to Fintech's drastically increasing operating costs and expenses and net loss attributable to the Company, the 1Q19 Press Release disclosed that total operating costs and expenses for the first quarter of 2019 increased by 36.4% to $14.0 million from $10.3 million in the first quarter of 2018, and that employee compensation and benefits increased by 60.8% from $4.9 million in the first quarter of 2018 to $7.8 million in the first quarter of 2019.
On this news, ADSs of Fintech fell over 17%, closing at $5.77 per share on May 17, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than January 6, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE: Rigrodsky & Long, P.A.