NEW YORK, Aug. 15, 2020 (GLOBE NEWSWIRE) – Pomerantz LLP announces that a class action lawsuit has been filed against Wins Finance Holdings, Inc. (“Wins” or the “Company”) (WINS) and some of its officers. The class action lawsuit, filed in the U.S. District Court for the Central District of California and filed under 20-cv-06656, is directed to a class comprised of all persons except defendants who purchased or purchased Wins securities between October 31st otherwise acquired. 2018 and July 6, 2020, both dates including (the "Class Period") to seek damages caused by Defendants' breaches of federal securities laws and to seek remedial action under Sections 10 (b) and 20 (a) des The Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 therein against the Company and some of its chief officers.
If you are a shareholder who purchased Wins securities during the class period, you have until September 23, 2020 to petition the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at (Email protected) or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those inquiring by email are asked to provide their postal address, telephone number, and the number of shares purchased.
(Click here for information on how to participate in the class action.)
Wins claims through its subsidiaries to offer financing solutions for small and medium-sized companies in the People's Republic of China. The company purports to provide financial guarantees, financial leasing, advisory, advisory and agency services in Jinzhong City, Shanxi Province and Beijing.
In September 2017, Wins hired Centurion ZD CPA & Co. ("CZD") after the dismissal of its former auditing firm as an independent, registered auditing firm.
The complaint alleges that throughout the classroom, the defendants made materially false and misleading statements about the company's business, operational, and compliance policies. In particular, Defendants made false and / or misleading statements and / or did not disclose that: (i) the final repayment of the Guohong Loan of RMB580 million was highly uncertain; (ii) Failure to pay the Guohong loan would have a significant impact on the company's financial and operational health. (iii) weaknesses in Wins' internal control over financial reporting persisted despite repeated reassurances to investors that Wins would take steps to address those weaknesses; (iv) the foregoing, among other things, made the resignation of Wins' independent auditor foreseeable; and (v) as a result, the Company's public statements at all relevant times have been materially false and misleading.
On October 31, 2019, Wins filed with the Securities and Exchange Commission ("SEC") ("NT 20-F 2019") a notice of its inability to timely file Form 20-F on Form NT 20-F.
The following trading day, the company's share price fell from $ 11.90 to $ 11.20, or 5.8%, due to an unusually high trading volume.
On November 19, 2019, Wins published a press release announcing the receipt of a notification letter from NASDAQ Listing Qualifications and the intention to submit a compliance plan.
On May 26, 2020, Wins published a press release announcing that the company had received a delisting letter from Nasdaq. The press release reads in a relevant part: “(a) s previously disclosed, the company is working diligently to complete the defaulted filing with the SEC and to restore compliance with the Nasdaq listing rule as soon as possible. "
In response to this news, Wins stock closed at $ 7.81 that day, up from its previous closing price of $ 10.06, a 22.3% decline amid unusually high trading volumes.
The company's undisclosed ongoing financial troubles – including the non-repayment of the Guohong loan – and major control weaknesses emerged on June 30, 2020, when CZD stepped down as the company's independent auditor after less than three years. On July 6, 2020, Wins published a press release announcing CZD's resignation.
In that news, Wins' stock price fell $ 2.06 per share, or 6.1%, to close at $ 31.70 per share on July 7, 2020.
The Pomerantz firm, with offices in New York, Chicago, Los Angeles and Paris, is recognized as one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, dean of class action lawsuit, Pomerantz pioneered class action lawsuits. Today, more than 80 years later, the Pomerantz company continues its tradition and fights for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has reclaimed numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby