The complaint, filed in the U.S. District Court for the Eastern District of New York, names Qfin and its senior executives as defendants, citing violations of the Securities Exchange Act of 1934. Plaintiffs claim that despite public assurances of business resilience and steady performance, the company downplayed the negative impact of tightening regulations on its credit-driven platform. These claims came to a head on August 26, 2026, when shares plummeted 18.9% following an earnings disclosure that revealed a 31.6% drop in net revenue and a 76.8% decline in net income year-over-year.

Investors who purchased Qfin securities have until November 27, 2026, to petition the court for lead plaintiff status in the case, captioned Kassam v. Qfin Holdings, Inc. et al. Legal firm Bleichmar Fonti & Auld LLP, which represents the plaintiffs, contends that the company’s internal challenges—including industry-wide liquidity shocks and shifting oversight—were far more severe than the optimistic guidance provided to shareholders earlier in the year.