Shareholder Investigation of Uxin Limited
Uxin Limited (UXIN) Accused of Inflating its IPO Price
According to the complaint against Uxin Limited for alleged violations of the Securities Act of 1933 pursuant to its June 27, 2018 initial public offering (“IPO”), Uxin Limited (UXIN) claimed that it was experiencing rapid growth in both its consumer-aimed and business-focused segments. Based on its misleading registration documents, Uxin held its IPO in June 2018, and generated over $205 million in proceeds. In particular, Uxin failed to disclose that the company would stop providing complementary services to its customers and instead connect consumers to dealers who would provide such services. As a result, Uxin’s auction business, which sells used cars to dealers, would be negatively impacted. Just two months after the IPO, in August 2018, Uxin announced a strategic change in its approach in serving customers with car-selling needs. Shortly thereafter, in November 2018, Uxin reported that its transaction volume had decreased by 8.5%. Following this news, Uxin’s share price closed at $4.50, approximately 50% of the IPO price of $9.00 per share. The stock now trades even lower at just $2.72 per share, approximately 70% below the IPO price.
Uxin Limited (UXIN) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.