Qfin Faces Securities Fraud Class Action

Investors have filed a proposed securities class action against Qfin Holdings, alleging the company and executives overstated the resilience of its business and downplayed the effects of tighter Chinese regulation. The proposed class covers investors who acquired Qfin securities from March 18 through August 25, 2026. The allegations center on Qfin’s August 25 second-quarter report, which showed year-over-year declines of 31.6% in revenue and 76.8% in net income, alongside a forecast of a sharp further drop in third-quarter adjusted earnings amid rising funding costs and strain in China’s consumer-credit market. Qfin shares fell nearly 19% the next day. The claims are allegations, and the reports urge affected investors to contact the law firms handling the case about their rights and the lead-plaintiff process.