QFIN Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Qfin Holdings, Inc. Securities Lawsuit - Contact SueWallSt
Time-Sensitive: Allegations Focus on Tax Position Representations. QFIN's annual report stated that the Group had no significant unrecognized uncertain tax positions as of and for the years ended December 31, 2024 and 2025. Yet quarterly net income later plunged 76.8%, from approximately RMB 1.73 billion to RMB 401.4 million, heavily impacted by an unexpected RMB 500 million tax expense, and a securities action now challenges the Company's Class Period statements.
NEW YORK, Nov. 5, 2026 /PRNewswire/ -- SueWallSt alerts investors in Qfin Holdings, Inc. (NASDAQ: QFIN) of a pending securities class action on behalf of those who purchased or acquired Qfin securities during the Class Period of March 18, 2026 through August 25, 2026. Check if you might be eligible to recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
The China-based credit technology company's second-quarter 2026 net income fell 76.8% year over year to RMB 401.4 million. That was a drop of roughly RMB 1.33 billion, and it included an unexpected RMB 500 million tax expense, while the Company's American depositary shares fell nearly 19% on the next trading day. The Court has set November 27, 2026 as the deadline to apply for lead plaintiff appointment.
"Investors deserve transparency about material risks that could affect their investments, and tax exposure at a company operating under multiple PRC preferential tax regimes is one of those risks. The lawsuit asserts that Qfin shareholders who bought during the Class Period did so without an accurate picture of the Company's business." -- Joseph E. Levi, Esq.
What Qfin Told Shareholders About Its Tax Positions
Qfin's 2025 annual report on Form 20-F, filed April 27, 2026, stated that "the Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2024 and 2025." The filing described recognizing a tax position only when it is "more likely than not" to be sustained. The action claims this annual report was among the Class Period statements that were materially false and misleading.
The Alleged Tax Treatment Shift at a China Credit Technology Platform
Qfin operates the Qifu Jietiao credit technology platform, which matches borrowers in China with financial institutions. Its second-quarter results attributed the RMB 500 million charge to "a change in tax treatment of certain entities based on the updated interpretation of related tax regulations by the tax authorities." As alleged, that unexpected expense heavily impacted net income and formed part of the news that preceded the share decline.
Tax Regimes Shaping Qfin's Reported Earnings
- Standard rate: PRC resident enterprises are generally subject to a 25% enterprise income tax, the 2025 annual report stated.
- Reduced rates: Certain subsidiaries held "high and new technology enterprises" status for a 15% rate, while some Beihai entities applied preferential rates as low as 9%.
- Pillar Two: The Company estimated its income tax "would not be materially different" had Pillar Two legislation in jurisdictions such as Hong Kong, Singapore and the United Kingdom been in effect for 2025.
- Dividend withholding: Qfin said it used 5% "to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed," recording a RMB 255.0 million deferred tax liability at year-end 2025.
- Unrecognized liabilities: Undistributed mainland China profits carried unrecognized deferred tax liabilities of approximately RMB 804.3 million, per the same filing.
Learn more about the case or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the QFIN Lawsuit
Q: Who is eligible to join the QFIN investor lawsuit? A: Investors who purchased QFIN stock or securities between March 18, 2026 and August 25, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What specific misstatements does the QFIN lawsuit allege? A: The complaint alleges Qfin Holdings, Inc. made materially false or misleading statements regarding the resiliency and stability of its business and financial results in the face of PRC regulatory changes, and the impact of regulatory headwinds on those results, during the Class Period. When second-quarter 2026 results reflecting a 76.8% drop in net income, including an unexpected RMB 500 million tax expense, were disclosed, the stock price declined sharply.
Q: What court was the QFIN class action filed in? A: The case was filed in the United States District Court for the Eastern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do QFIN investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.
Q: What if I already sold my QFIN shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
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SOURCE SueWallSt.com
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