Chinese Lender Says It Didn't Gloss Over Regulation Risks
By Cara Mannion (March 29, 2017, 2:15 PM EDT) -- Peer-to-peer lender Yirendai Ltd. urged a California federal court on Tuesday to toss a shareholder suit alleging it glossed over risks from the Chinese government's crackdown on online lending fraud, saying investors' "dire predictions" of revenue loss from the new regulations were never actualized.
The China Banking Regulatory Commission's new peer-to-peer lending regulations have not caused revenue losses by limiting offline customer sourcing, Yirendai said, arguing the stock-drop suit fails because securities fraud claims cannot rely on false premises.
"Contrary to plaintiffs' dire predictions of threats to half of Yirendai's revenue, since passage of the [regulations], Yirendai's operations have continued uninterrupted,...
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