A securities action alleges Qfin promoted a compliance-first strategy while omitting, in violation of Item 303 according to the complaint, how tightening PRC lending and collection rules were already eroding its earnings.

NEW YORK, Oct. 15, 2026 /PRNewswire/ — SueWallSt notifies investors who suffered losses on Qfin Holdings, Inc. (NASDAQ: QFIN) securities that a securities class action is pending in the United States District Court for the Eastern District of New York. The action covers purchases of Qfin securities between March 18, 2026 and August 25, 2026. Submit your information now or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

The deadline to seek appointment as lead plaintiff is November 27, 2026. Qfin ADS holders lost $2.18 per ADS, an 18.91% decline to $9.35, on August 26, 2026. The drop followed the Company’s guidance of RMB 400 million to RMB 500 million in third quarter non-GAAP net income, a 67% to 73% year-over-year decline.

The Alleged Item 303 Regulatory Disclosure Gap

Item 303 of SEC Regulation S-K requires companies to describe known trends or uncertainties reasonably likely to materially affect revenue or income. The complaint alleges Qfin failed to disclose that PRC regulatory changes were likely to have, or were already having, a significantly more negative impact on its earnings and operating metrics than represented.

That alleged gap sat beside confident compliance messaging. On the March 17, 2026 conference call, management said the Company had “proactively pivoted our strategy to embrace regulatory changes, by putting compliance and risk management at the core of our strategy.” The 2025 annual report on Form 20-F stated that Qfin had “promptly adjusted our risk strategies across the entire credit lifecycle to manage our risk performance.”

PRC Regulatory Measures Cited in the Complaint

• New loan facilitation rules introduced in 2025, which the lawsuit links to a systemic restructuring of China’s consumer finance industry
• Window guidance steering consumer finance companies to allocate credit in line with official targets
• Guidelines on comprehensive financing cost management for micro lenders
• Q3 2026 requirements on comprehensive financing cost disclosures for personal loans and the online marketing of financial products
• A nationwide campaign targeting the collection industry that management said caused a severe shortage of collection capacity

Tightening Oversight Acknowledged in Second Quarter Results

On August 25, 2026, management reported that regulatory oversight “continued to tighten,” bringing the credit industry “under a stricter framework, covering pricing, marketing, funding, collections and payments.” These were known regulatory trends that belonged in earlier disclosures. Instead, they surfaced alongside a sharp guidance cut on the final day of the Class Period.

“Qfin told investors that compliance was central to its strategy, which makes the accuracy of its disclosures about regulatory impact especially important. The complaint alleges the Company did not describe regulatory trends that were already weighing on its results until the August 25 announcement.” — Joseph E. Levi, Esq.

Find out if you might qualify to recover losses 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: What is the QFIN class action lawsuit about? A: A securities class action has been filed against Qfin Holdings, Inc. (NASDAQ: QFIN) alleging materially false and misleading statements between March 18, 2026 and August 25, 2026. Shares fell approximately 18.91% after the Company disclosed second quarter 2026 results showing a 31.6% revenue decline and a 76.8% drop in net income that included an unexpected RMB 500 million tax expense, along with third quarter guidance projecting a 67% to 73% decline in non-GAAP net income. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.

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 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 is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

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.

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: Can I join a different law firm’s lawsuit instead? A: Yes. Investors may choose which law firm to contact. Multiple firms often file competing complaints. The court may consolidate related cases and appoint a single lead counsel.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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SOURCE SueWallSt.com