LU Investor Alert: Lufax Holding Ltd Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Filed Inadequate Disclosures: SueWallSt

Disclosure Under Scrutiny: Were Lufax's Risk Warnings Adequate When Internal Controls Were Allegedly Already Failing?

NEW YORK, April 16, 2026 /PRNewswire/ -- SueWallSt examines the adequacy of Lufax Holding Ltd's (NYSE: LU) risk disclosures in its 2022 and 2023 Annual Reports. Shareholders who purchased LU securities between April 7, 2023 and January 26, 2025 and lost money may be entitled to recover damages. Find out if you qualify to recover your per-share losses or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Lufax ADS holders lost $0.63 per share over three trading sessions following the January 27, 2025 corrective disclosure, a cumulative decline of approximately 22% from the prior close. The last day to move for lead plaintiff is May 20, 2026.

What the Company Disclosed

In both its 2022 and 2023 Annual Reports, Lufax included boilerplate language acknowledging that "internal control over financial reporting may not prevent or detect misstatements" and that "controls may become inadequate because of changes in conditions." Each filing also carried SOX certifications signed by senior officers attesting that disclosure controls were "effective" and that internal controls over financial reporting were "effective" under the COSO 2013 framework.

What the Complaint Challenges as Missing

The securities action contends that the generic risk factor language stood in stark contrast to what was actually occurring inside the Company. Specifically, the complaint charges that:

• Lufax's internal controls were already deficient at the time both Annual Reports were filed, yet the certifications stated otherwise
• Possible related party transactions (the "Subject Transactions") were not properly identified or disclosed to investors
• The Company's 2022 total income was overstated by RMB 493.8 million and the expense adjustments totaled RMB 473.5 million, with a resultant net profit overstatement of RMB 917.0 million, facts allegedly known or recklessly disregarded by management
• For 2023, total expense adjustments of RMB 90.0 million and a net profit overstatement of RMB 81.4 million were similarly concealed
• PwC ultimately withdrew its audit opinions for both years after concluding it could no longer rely on management representations

Why Generic Warnings May Not Protect

The complaint highlights a critical distinction: Lufax's risk disclosures warned that controls "may" become inadequate in the future. The lawsuit maintains that controls had already failed. As pleaded, this was not a hypothetical risk materializing unexpectedly but an existing problem papered over with forward-looking hedging language. When PwC informed the Audit Committee of its concerns in October 2024, the auditor's letter described specific possible related party transactions, not generic possibilities.

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. Investors reading Lufax's filings were told controls were effective at a time when, the complaint alleges, they were not." -- Joseph E. Levi, Esq.

Join the Lufax recovery action or call Joseph E. Levi, Esq. at (888) SueWallSt.

SueWallSt, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

CONTACT: SueWallSt Joseph E. Levi, Esq. Ed Korsinsky, Esq. 33 Whitehall Street, 27th Floor New York, NY 10004 [email protected] Tel: (888) SueWallSt Fax: (212) 363-7171

SOURCE SueWallSt.com