Chinese Lender Says It Didn't Gloss Over Regulation Risks

Law360, New York (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...
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Case Title

Alexandru Lefter v. Yirendai Ltd. et al


Case Number

2:16-cv-06437

Court

California Central

Nature of Suit

Securities/Commodities

Judge

Michael W. Fitzgerald

Date Filed

August 26, 2016

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