Chinese fintech company 9F Inc. is once again pushing back against a lawsuit brought by investors alleging securities violations tied to its Initial Public Offering (IPO). In a recent filing, the company has urged the U.S. District Court for the District of New Jersey to dismiss the third amended complaint, stating that plaintiffs continue to lack legal standing and fail to establish any actionable misconduct regarding its partnership with insurance firm PICC Property and Casualty Co. Ltd.

The lawsuit, which claims that 9F misled investors during its IPO by not disclosing an allegedly illegal arrangement with PICC, was challenged by 9F on the grounds that it was filed beyond the applicable repose period. The company emphasized that it had provided “extensive disclosures” about its cooperation with PICC and denies any wrongdoing.

"Plaintiffs cannot allege that PICC, the People's Republic of China, or anyone else has ever claimed—let alone proven—that the agreement between 9F and PICC was illegal," the company said in its Friday motion. "They have shown again and again that they cannot state a claim. Enough is enough. This action should be dismissed in its entirety with prejudice."

Background of the Dispute
Investors allege that 9F failed to inform shareholders that many of its accounts receivable—labeled as uncollectible—were actually funds owed by PICC. They also claim that the partnership was used as a workaround to evade Chinese regulatory restrictions, with borrowing costs allegedly surpassing the legal annual percentage rate (APR) ceiling of 36%.

In December, U.S. District Judge Michael E. Farbiarz dismissed one of the core claims regarding the company’s registration statement, citing a lack of supporting factual evidence. Despite this, investors filed a revised complaint in an attempt to revive their case.

9F’s Friday filing contends that the latest version of the complaint still fails to present any new or substantial evidence concerning scienter (intent to deceive) and loss causation, which are both essential elements of a securities fraud claim.

The company further warned against plaintiffs' attempt to bypass legal safeguards: “The position urged by plaintiffs would nullify the statutes of repose, allowing claims without proper standing to persist indefinitely. That is not the law—and for good reason.”

About 9F Inc.
Headquartered in Beijing, 9F Inc. is a technology-driven financial services platform offering a range of products including consumer loans, wealth management tools, and payment facilitation. The company went public in 2019.

Legal Representation
The plaintiffs are represented by attorneys from Carella Byrne Cecchi Olstein Brody & Agnello PC, Glancy Prongay & Murray LLP, and the Law Offices of Howard G. Smith.

9F Inc. is represented by Skadden, Arps, Slate, Meagher & Flom LLP.