9F (NASDAQ:JFU) is facing an investigation over its initial public offering (IPO) but that isn’t keeping JFU stock from rising higher on Wednesday.
The investigation into 9F comes from law firm Barr Law Group over concerns it has with the IPO. That includes “possible breaches of fiduciary duties and other violations of law.” The law firm notes that this also covers “securities claims on behalf of shareholders stemming from 9F’s IPO on August 15, 2019.”
Barr Law Group points out that the 9F IPO saw the company sell more than 8 million shares of JFU stock for a price of $9.50 each. However, the company’s stock has fallen more than 85% to a closing price of $1.40 on Tuesday.
According to Barr Law Group, a class action lawsuit has been filed on behalf of 9F investors that purchased shares of JFU stock and lost money. There is no fee to join the lawsuit as it’s contingency based.
Barr Law Group isn’t the only law firm going after 9F. The Portnoy Law Firm put out a similar call to JFU investors last month. The issue stems from 9F’s dealings with insurance partner PICC.
An issue between 9F and PICC kept the former from releasing its annual report on time this year. It’s also worth noting that the problem extends to before the company filed its IPO last year.
JFU stock was up 16.9% as of noon Wednesday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
