Investors who bought or otherwise acquired Qfin Holdings securities between March 18, 2026 and August 25, 2026 may be covered by a proposed class action alleging Qfin misled investors about how well its China credit business was withstanding new consumer finance regulations. No class has been certified and there is nothing to file yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Qfin Holdings, Inc. and its current and former executives have not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
A Qfin Holdings investor filed a proposed securities class action against the company and three of its executives on September 28, 2026 in the U.S. District Court for the Eastern District of New York, in Brooklyn. The case is Kassam v. Qfin Holdings, Inc., No. 1:26-cv-06024, and it is assigned to Judge Brian M. Cogan. It is brought on behalf of investors who bought or otherwise acquired Qfin securities between March 18, 2026 and August 25, 2026.Qfin is a Cayman Islands company with its principal executive offices in Shanghai. It runs a credit technology platform in China under the Qifu Jietiao brand that matches borrowers with financial institutions, and its American depositary shares trade on the Nasdaq under the ticker QFIN, each representing two Class A ordinary shares. The complaint alleges that Qfin repeatedly told investors its business was resilient and stable despite new Chinese consumer finance rules, and points to August 25, 2026, when Qfin reported sharply lower second-quarter results and weak guidance, as the day the alleged truth came out.
The case is at the complaint stage. No lead plaintiff has been appointed, no class has been certified, and there is no settlement, fund or claim form.
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China’s Consumer Finance Rules and Qfin’s Statements
According to the complaint, China’s consumer finance industry began a broad restructuring in 2025 in response to new regulatory guidance, including new loan facilitation rules, informal “window guidance” for consumer finance companies and guidelines on financing costs for micro lenders. The complaint quotes chief executive Haisheng Wu acknowledging that these measures tightened market liquidity in the near term, suppressed credit demand and put pressure on loan growth and risk management across the industry.The class period opens on March 18, 2026, the day after Qfin reported fourth-quarter and full-year 2025 results. The complaint quotes Wu saying in the results release that the company had tightened risk standards, adjusted its business mix and optimized its cost structure to mitigate some of the impact and maintain the resilience of its baseline business. On the earnings call, according to the complaint, Wu said “our performance remains resilient and stable overall” and that the company expected to emerge from the regulatory cycle as a stronger industry leader, while chief financial officer Alex Xu pointed to a record RMB 11.1 billion in 2025 operating cash flow and chief risk officer Yan Zheng said the company’s risk-tightening measures had begun to show results.
The complaint also cites Qfin’s 2025 annual report on Form 20-F, filed April 27, 2026, which described its response to the sector-wide rise in risk and stated that the company had no significant unrecognized uncertain tax positions. On May 26, 2026, when Qfin reported first-quarter 2026 results, the complaint quotes Wu saying the company had “withstood the pressure” of tightening regulation and “demonstrated strong resilience.”
What the Complaint Alleges Was Misleading
The complaint alleges that the statements made from March through May 2026 were false or misleading because Qfin and its executives overstated the resilience and stability of its business and financial results despite the regulatory changes, and downplayed how severely those regulatory headwinds were likely to affect, and were already affecting, the company’s business and results.The August 25, 2026 Results and ADS Drop
On August 25, 2026, after the market closed, Qfin reported second-quarter 2026 results. According to the complaint, total net revenue fell 31.6% from a year earlier, from about RMB 5.22 billion to about RMB 3.57 billion, and net income fell 76.8%, from about RMB 1.73 billion to RMB 401.4 million. The complaint says the net income figure was heavily affected by an RMB 500 million tax expense that Qfin attributed to a change in the tax treatment of certain entities based on tax authorities’ updated interpretation of the rules. Qfin also guided to a 67% to 73% year-over-year decline in third-quarter non-GAAP net income, citing rising funding costs and liquidity shocks in the Chinese consumer credit market.The complaint quotes Wu citing “continued industry contraction, tighter regulatory oversight, and a sudden industry-wide liquidity shock in late June,” and saying that funding conditions and risk management were likely to remain under pressure. According to the complaint, Qfin’s American depositary shares fell $2.18, or 18.91%, to close at $9.35 on August 26, 2026.
Who Is Being Sued and Under Which Laws
The defendants are Qfin Holdings, Inc.; Haisheng Wu, its chief executive officer during the class period, who stepped down effective September 21, 2026; Alex Xu, its chief financial officer; and Yan Zheng, its chief risk officer during the class period, who became chief executive officer effective September 21, 2026.The complaint asserts two claims:
- Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, against all defendants.
- Section 20(a) of the Exchange Act, a control-person claim against Wu, Xu and Zheng.
These claims require the plaintiff to show, among other things, that the defendants made false or misleading statements with intent to mislead or with severe recklessness, and that the statements caused investors’ losses. The complaint seeks class certification, damages, interest, and attorneys’ fees and costs, and it demands a jury trial. None of the allegations has been tested in court.
Who Is in the Proposed Class?
The proposed class is everyone who bought or otherwise acquired Qfin securities between March 18, 2026 and August 25, 2026, inclusive, and was damaged when the alleged corrective disclosure was made. The defendants, the company’s officers and directors at all relevant times, their immediate families, legal representatives, heirs, successors and assigns, and any entity in which the defendants have or had a controlling interest are excluded. The class exists only as a proposal until a court certifies it, and its definition can change as the case proceeds.What Happens Next
The Private Securities Litigation Reform Act requires the first plaintiff in a securities class action to publish a notice of the case, after which investors have 60 days to ask the court to appoint them lead plaintiff. According to PSLRA notices published by law firms, that deadline in the Qfin case is November 27, 2026, which matches the 60-day window from the September 28 filing. The date comes from the notices, not from a court order. After the court picks a lead plaintiff and lead counsel, an amended complaint usually follows, and the defendants typically move to dismiss.The complaint was filed by Pomerantz LLP. As of October 26, 2026, the docket shows the complaint, summonses issued October 1 and notices of appearance by the plaintiff’s attorneys, and no response from the defendants. Members of a proposed securities class generally remain in the class without seeking the lead plaintiff role. There is no money available unless the case produces a settlement or judgment, which would come with its own notice and claim process.
Questions
Who is covered by the Qfin securities class action?
The proposed class is everyone who bought or otherwise acquired Qfin Holdings securities, including its Nasdaq-listed American depositary shares, between March 18, 2026 and August 25, 2026, inclusive, and was damaged when the alleged corrective disclosure was made. The defendants, the company’s officers and directors, their immediate families and entities the defendants control are excluded. No class has been certified.
What is the November 27, 2026 deadline in the Qfin case?
According to PSLRA notices published by law firms, November 27, 2026 is the deadline for investors to ask the court to appoint them lead plaintiff under the Private Securities Litigation Reform Act. That matches the statute’s 60-day window from the September 28, 2026 notice. It is not a claim deadline. Members of a proposed securities class generally remain in the class without seeking that role, and there is no money or claim form available.
What does the Qfin lawsuit claim was misleading?
The complaint alleges that from March through May 2026 Qfin and three executives described its business as resilient and stable in the face of new Chinese consumer finance regulations, while overstating that resilience and downplaying how much the regulatory headwinds were already hurting results. Qfin has not been found liable.
What happened to Qfin stock on August 26, 2026?
After Qfin reported second-quarter 2026 results on August 25, 2026, showing a 31.6% drop in total net revenue and a 76.8% drop in net income that included an RMB 500 million tax expense, its American depositary shares fell $2.18, or 18.91%, to close at $9.35 on August 26, 2026, according to the complaint.
Is there a Qfin securities settlement to claim?
There is no settlement, fund or claim form. The case is at the complaint stage, no lead plaintiff has been appointed and no class has been certified. Money would become available only if the case produced a settlement or judgment, which would come with its own court-approved notice and claim process.
Sources
- Class action complaint — Kassam v. Qfin Holdings, Inc., filed September 28, 2026
- Court docket — No. 1:26-cv-06024 (E.D.N.Y.) (CourtListener)
- Qfin Holdings SEC filings — EDGAR company filing index
