Lufax faces class action over alleged financial misstatements and weak controls
A class action lawsuit has been filed against Lufax Holding Ltd., a Chinese retail credit and financial services company. The legal action targets alleged financial misstatements and weak internal controls during the period from April 7, 2023, to January 26, 2025. Shareholders who bought securities in this timeframe may be eligible to participate. The case centres on claims that Lufax failed to maintain proper financial oversight and provided misleading information in its reports. On January 27, 2025, the company announced plans to replace its auditor, PricewaterhouseCoopers (PwC), after the firm raised serious doubts about Lufax's financial disclosures. These concerns made PwC's audit opinions for the 2022 and 2023 reports unreliable.
The news triggered a sharp decline in Lufax's American Depositary Shares (ADSs), which dropped from $2.90 to $2.26 over three trading days. Since then, the stock has continued to fall, reaching approximately $1.89 by March 26, 2026—a 58.2% drop from its 52-week high. Over the past year, shares have lost 42.34%, with recent declines of 32.48% in 30 days and 38.24% over 12 months.
Robbins LLP, a law firm specialising in shareholder rights since 2002, is representing investors on a no-fee, contingency basis. Those wishing to act as lead plaintiff must file their documents with the court by May 20, 2026. The lawsuit highlights ongoing concerns about Lufax's financial transparency and governance. Investors affected during the specified period can seek more information or join the case. The company's stock performance remains under pressure, reflecting broader market reactions to the allegations.
