February 17, 2021 - An investor in shares of Jianpu Technology Inc. (NYSE: JT) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Jianpu Technology Inc. in connection with certain allegedly false and misleading statements made between May 29, 2018 and February 16, 2021.
China based Jianpu Technology Inc. operates a platform that provides online discovery and recommendation services for financial products in the People's Republic of China. On February 16, 2021, Jianpu Technology Inc. announced the results of its review into “transactions carried out by the Credit Card Recommendation Business Unit” with third-party business entities.
The Company concluded that previously reported revenue and associated expenses had been inflated due to “certain transactions [that] involved third-party agents (including both upstream agents and downstream suppliers) with undisclosed relationships and some transactions [that] lacked business substance.” Jianpu Technology Inc. stated that it “anticipates the total amount of overstated revenue for the fiscal years 2018 and 2019 to be approximately, RMB 90 million and RMB 164 million, respectively, representing approximately 4.5% and 10.1% of the total revenue previously reported.”
Shares of Jianpu Technology Inc. (NYSE: JT) declined from $5.39 per share on February 16, 2021, to as low as $2.76 per share on February 23, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Jianpu Technology Inc. (NYSE: JT) common shares between May 29, 2018 and February 16, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 29, 2018 and February 16, 2021, the defendants made false and/or misleading statements and/or failed to disclose that certain of Jianpu's transactions carried out by the Credit Card Recommendation Business Unit involved undisclosed relationships or lacked business substance, that as a result, Jianpu's revenue and costs and expenses for fiscal 2018 and 2019 were overstated, that there were material weaknesses in Jianpu's internal control over financial reporting, that as a result of the foregoing, Jianpu's fiscal 2018 Form 20-F was reasonably likely to be restated, and that as a result, Jianpu's public statements were materially false and misleading at all relevant times.