Chapter 479

It is not an exception that Chinese concept stocks have encountered "class action lawsuits" in the United States.Before Yimindai, companies such as New Oriental and Ali were sued successively.

To put it bluntly, there are many troublemakers in the United States, and they are not convinced after losing money in casinos.

In addition, there are also many law firms in the United States that are just bad money, and some law firms specialize in focusing on listed companies to make a fortune.

The law firm eyeing Yimindai this time is called Rosen Law Firm, a global investor rights protection law firm.

This law firm had sued Ahli before, but the lawsuit ended in being dismissed.

The lawsuit against New Oriental ended with an out-of-court settlement of $475 million by New Oriental.

Anyway, there are wins and losses in the record, and the picture is just a "money".

Rosen Law Firm announced that it is investigating a potential securities claim on behalf of investors in Yimindai, a Chinese internet finance company, over allegations that Yimindai issued highly misleading business information to investors.

Rosen Law Firm also claimed that Yimindai acquiesced in the occurrence of fraud on its platform, deliberately increasing its operating income.

Then, the law firm advertised in a local newspaper that it had filed a class action lawsuit against Yimindai and its executives on behalf of investors who bought shares in Yimindai between March 3 last year and March 11 this year.

The reason is that Yimindai violated the U.S. Federal Securities Exchange Act by issuing false and misleading statements and failing to disclose relevant information.

The U.S. District Court for the Central District of California accepted the case.

As the news came out, the stock price of Yimindai fell sharply again. As of the close on the 15th, the stock price closed at $9.23, with a market value of $21.33 billion.

Compared with the issue price of US$15.5, the stock price has fallen by 40%.

Zhang Yida convened Yimindai's major shareholders to discuss a solution.

"Rosen Law Firm is a well-known hyena. New Oriental was targeted by them once, and it finally cost nearly 500 million US dollars to settle."

When Xu Xiaoming talked about this matter, his face was full of disdain.

I don't know whether it's the disdain for Dongfang Yu's weakness, or the professional ethics of Lawson Law Firm.

Zhang Yida sneered, "Reconciliation is impossible. I would rather spend 1000 million dollars to hire the top law firm than pay Lawson 1 dollar."

Shen Beipeng frowned. The two major events of "Xueba 1-on-1 running away" and "class action" had a very serious impact on Yimindai's stock price.

Blackshirt Capital actually cashed out from Yimin Wangjin and Yimin Wealth, but Yimindai was the latest to go public, and it has only been listed for a year until today.

As soon as the six-month lifting period passed, Blackshirt Capital began to reduce its holdings, but it has only reduced half of its holdings so far.

Now encountering such a thing, the reduction of holdings can only be suspended.

I don't know how long it will take to return to the high market value of 50 billion US dollars?

Thinking of this, Shen Beipeng was determined to tear up Lawson Law Firm.

Lenovo and Zhang Yida crazily reduced their holdings of the stocks of three Yimin listed companies last year. Shen Beipeng felt that it was too prescient.

Not only have we encountered these bad things this year, the attitude of the regulatory agencies has always been ambiguous, and no one knows how long the Internet financial innovation road can go.

Shen Beipeng said: "I support it, I read the reason of the Lawson & Associates' lawsuit, it's a joke, a lame reason I don't know where to find it.

We can't be patient, the more you are patient, the more others will push forward.

If they settled with Rosen Law Firm, then other law firms should come to their door again.

At that time, was it paid or not? "

Wang Jingbo from Gopher Assets sat on the sidelines without speaking, with a sad expression on her face, she felt that she was in a boat of thieves.

More than a year ago, it acquired a 4666% stake in Yimindai at a price of US$2 million. At that time, Yimindai was valued at US$23.33 billion.

Now that Yimindai is listed, the 2% shares held by Gopher Assets have been diluted to only 1.73%.

Based on this year's closing price, this stake is worth $3690 million.

It’s a loss, it’s a big loss. It’s been a waste of more than a year, and the book loss is nearly 1000 million U.S. dollars.

She regrets now that she didn't follow Zhang Yida when she saw Zhang Yida reduce his holdings last year.

In fact, this is not her fault. Last year, one Internet finance company after another went public, thinking that the industry was finally ushering in a big explosion.

At that time, Wang Jingbo saw that Yimindai's financial report was so good-looking and the growth rate was so gratifying, and he thought that Yimindai was likely to surpass Miaofenqi, and its market value stood at the level of tens of billions of dollars.

But seeing the current situation, if you can lose less, it is considered a profit.

She gave Shen Beipeng a light look, her eyes were full of resentment.

It was because of Shen Beipeng's matchmaking that she unfortunately invested in Yimin Loan.

In addition, Heishan Capital recommended Yimin Wangjin to her. Gopher Assets participated in the fixed increase of Yimin Wangjin at a price of US$49, and bought 2.45 million ADSs for US$500 million.

Now, the stock price of Yimin Wangjin has fallen to about 30 US dollars. With this investment alone, the book loss of Gopher Assets is nearly 1 million US dollars.

Right now, what confuses her the most is to stop the loss immediately, or wait for the stock price to rise.

She didn't express any opinion. She felt that it was necessary to have a good chat with Zhang Yida after the meeting.

Shareholder representatives of CITIC Industrial Investment Fund and China Merchants also expressed their views and supported Yimindai to fight the lawsuit.

The two institutions entered the market with a valuation of US$15 billion, and their books are still profitable, but they are not in a hurry.

Bank of America Merrill Lynch, Goldman Sachs, and Morgan Stanley entered the market in the same round as Gopher Assets.

But after all, it is an old-fashioned investment bank, and its risk management is in place. Last year, some stocks were cashed out.

There is basically no loss on the books, but there is still a part of the equity that has not been cashed out.

Now that they encountered a Rosen law firm that blocked their money, the three organizations were very angry.

Robert of Goldman Sachs said: "Mr. Zhang, I support you. A notorious law firm like Rosen cannot let them taste any sweetness.

Wall Street is a place where the weak prey on the strong, and Yimindai must take a tough attitude. "

Evans of Morgan Stanley was more direct. He said: "Morgan Stanley has several law firms that have cooperated for many years. They are all well-known and large law firms in the United States. They can be introduced to Yimindai."

Wang Zheng from Bank of America Merrill Lynch said with a smile: "Rosen Law Firm is a clown, we have so many shareholders here, how can we be afraid of him?"

Wang Zheng looked at Zhang Yida with a smile, and said, "The headquarters of Bank of America Merrill Lynch has already issued a message. If necessary, Yimindai can entrust Bank of America Merrill Lynch to represent the case.

It's not worth distracting Mr. Zhang too much for a little thing. "

Bank of America Merrill Lynch is so good?

When Zhang Yida was thinking about the reason, Robert was the first to react, "Yes, it's just a small matter, and Goldman Sachs can help solve it."

Evans smiled and said, "Leave it to Morgan Stanley. Within a week, give Mr. Zhang a perfect solution."

Shen Beipeng, Xu Xiaoming and the others were thoughtful, this is so good at licking, right?
Zhang Yida understood the intentions of the three of them and the investment bank they represented behind them. He was thinking about Ruixiang and Zhonghe's qualifications as an underwriter.

"Hehe, the three are really warm-hearted!"

Zhang Yida smiled faintly, "Will this trouble you too much?"

"No trouble, no trouble."

Robert waved his hands again and again, "We are also shareholders, so we should do something for Yimindai."

The other two also nodded, and spoke nice words plausibly.

"Okay, then please three of you! How much legal fees are needed will be transferred from Yimindai to you."

Wang Zheng smiled and said: "What money is not money, a little thing, there is no need to spend money."

Robert and Evans looked at each other, and both saw the surprise in each other's eyes.

Immediately, the two also nodded, expressing that there is no need to spend money.

Seeing their enthusiasm, Zhang Yida simply left the task to them.

If you want to be qualified as an underwriter, you need to show off your muscles.

 Thank you for the reward of Xiao Yu's home run!

  
 
(End of this chapter)

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