Qudian Securities Settlement

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Qudian Securities Settlement
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The information contained on this web page is only a summary of information presented in more detail in the Notice of Pendency of Class Action and Proposed Settlement, Settlement Hearing, and Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), which you can access by clicking here. Since this website is just a summary, you should review the Notice for additional information.

If you are a Settlement Class Member, your legal rights will be affected by this Settlement whether you act or do not act. 

Please read the Notice carefully.

IF YOU PURCHASED OR OTHERWISE ACQUIRED QUDIAN AMERICAN DEPOSITORY SHARES (“ADS”) IN OR TRACEABLE TO QUDIAN’S INITIAL PUBLIC OFFERING ON OR ABOUT OCTOBER 18, 2017 YOU ARE A CLASS MEMBER.

YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT:

SUBMIT A CLAIM FORM POSTMARKED NO LATER THAN APRIL 14, 2021.

The only way to get a payment.  See Question 8 of the Notice for details.

EXCLUDE YOURSELF FROM THE CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN APRIL 6, 2021.

 Get no payment.  This is the only option that, assuming your claim is timely brought, might allow you to ever bring or be part of any other lawsuit against Defendants or the other Released Defendant Parties concerning the Released Claims.  See Question 11 below for details.

OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS RECEIVED NO LATER THAN APRIL 6, 2021.

 Write to the Court about why you do not like the Settlement, the Plan of Allocation, or the Fee and Expense Application.  If you object, you will still be a member of the Settlement Class.  See Question 14 of the Notice for details.

GO TO A HEARING ON APRIL 27, 2021 AT 4:00 P.M., AND FILE AN OBJECTION AND A NOTICE OF INTENTION TO APPEAR SO THAT IT IS RECEIVED NO LATER THAN APRIL 6, 2021.

Ask to speak in Court at the Settlement Hearing about the Settlement.  See Question 18 of the Notice for details. 

DO NOTHING.

 Get no payment AND give up rights to bring your own individual action.


The Settlement Hearing

The Settlement Hearing will be held on April 27, 2021 at 4:00 p.m., before the Honorable Jesse M. Furman in Courtroom 1105, United States District Court for the Southern District of New York, Thurgood Marshall United States Courthouse, 40 Foley Square, New York, NY 10007.  The Court reserves the right to approve the Settlement, the Plan of Allocation, Co-Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses, and/or any other matter related to the Settlement at or after the Settlement Hearing without further notice to the members of the Class.  In light of the ongoing pandemic the Court may choose to hold the Settlement Hearing telephonically or via videoconference, in which case, notice will be provided to the Class on the Court’s docket and this website.

Class Members do not need to attend the Settlement Hearing. The Court will consider any submission made in accordance with the provisions below even if a Class Member does not attend the hearing.  You can participate in the Settlement without attending the Settlement Hearing

What is this case about?

Qudian is a leading online “micro-lender” located in China.  Micro-lenders typically provide small loans to consumers.  The Action arises out of alleged misrepresentations and omissions contained in the Registration Statement for Qudian’s October 2017 IPO.

Among other things, the Second Amended Complaint alleges that Defendants violated the Securities Act by failing to disclose a pre-IPO plan for Qudian to launch an auto finance business called “Dabai Auto” and thus misrepresented the true state of Qudian’s business, operations, and risks Qudian was facing at the time of its IPO.  In addition, the Second Amended Complaint alleges separate misrepresentations or omissions concerning (i) Qudian’s alleged lending to college students in violation of Chinese law, (ii) Qudian’s allegedly aggressive and unlawful debt collection practices, (iii) allegedly excessive penalty fees that exceeded the statutory limit, and (iv) an alleged data breach and failure to disclose inadequate data security. The Second Amended Complaint further alleges that, as a result of the alleged misrepresentations and omissions, the price of Qudian’s ADS was artificially inflated, and declined when the truth was revealed. 

The Stipulation (together with the exhibits hereto) reflects the final and binding agreement between the Parties to fully and finally settle and release all claims that were asserted or could have been asserted in the Action in return for a cash payment by or on behalf of Defendants of $8,500,000 for the benefit of the Class.

The Stipulation constitutes a compromise of matters that are in dispute between the Parties.  Defendants are entering into this Stipulation solely to eliminate the uncertainty, burden, and expense of further litigation. Each of the Defendants denies any wrongdoing, and neither this Notice nor the Stipulation shall in any event be construed or deemed to be evidence of or an admission or concession on the part of any of Defendants’ Releasees with respect to any claim or allegation of any fault, liability, wrongdoing, or damage whatsoever or any infirmity in the defenses that Defendants have, or could have, asserted. 

On November 16, 2020, the Court preliminarily approved the Settlement, authorized the Notice to be disseminated to potential Class Members, and scheduled the Settlement Hearing to consider whether to grant final approval to the Settlement.

The Settlement Benefits

Pursuant to the Settlement, Defendants have agreed to pay or caused to be paid eight million five hundred thousand dollars ($8,500,000).  The Settlement Amount will be deposited into an escrow account.  The Settlement Amount plus any interest earned thereon is referred to as the “Settlement Fund.”  If the Settlement is approved by the Court and the Effective Date occurs, the “Net Settlement Fund (that is, the Settlement Fund less (a) all federal, state and/or local taxes on any income earned by the Settlement Fund and the reasonable costs incurred in connection with determining the amount of and paying taxes owed by the Settlement Fund (including reasonable expenses of tax attorneys and accountants); (b) the costs and expenses incurred in connection with providing notice to Class Members and administering the Settlement on behalf of Class Members; and (c) any attorneys’ fees and Litigation Expenses awarded by the Court) will be distributed to Class Members who submit valid Claim Forms, in accordance with the proposed Plan of Allocation or such other plan of allocation as the Court may approve.

Further Information

This website and the Notice summarize the Settlement.  For more details regarding the Settlement please reference the Settlement Agreement, or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Lead Counsel for further information regarding the Settlement:

Claims Administrator:

In re Qudian Securities Litigation

c/o A.B. Data, Ltd.

PO Box 173114

Milwaukee, WI  53217

(877) 884-2550

info@QudianSecuritiesSettlement.com

Lead Counsel:

Glancy Prongay & Murray LLP

Jonathan Rotter Esq.

1925 Century Park East

Suite 2100

Los Angeles, CA 90067

(888) 773-9224

settlements@glancylaw.com

Zwick Law Firm

Jack I. Zwick Esq.

225 Broadway

Suite 1440

New York, NY 10007

(212) 385-1900

jack@zwickfirm.com


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