Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Yiren Digital To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Yiren Digital between April 29, 2026 and October 13, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - November 1, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Yiren Digital Ltd. ("Yiren Digital" or the "Company") (NYSE: YRD) and reminds investors of the December 28, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) CreditEase, the Company's controlling shareholder, and its affiliates, all controlled by Defendant Tang, were experiencing severe financial distress that impaired their ability to satisfy their obligations; (2) as a result, the billions of RMB owed to the Company by CreditEase affiliates were subject to significant credit risk; (3) the Company was not separate from or unaffected by the affairs of CreditEase, given their shared leadership, the Company's dependence on CreditEase, and the Company's relationships with the CreditEase affiliates whose products defaulted; (4) Defendant Tang, the Company's Executive Chairman, CEO, and controlling shareholder, was exposed to material legal and regulatory risk, including potential criminal liability, arising from CreditEase's conduct; and (5) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
On May 22, 2026, various media outlets reported that CreditEase was suspending all principal and interest payments on its fixed-income-like wealth management products offered through its asset management platforms, including products of Heritvest, a disclosed related party of the Company, and announced an "orderly wind-down" of those products. On this news, the price of Yiren ADSs fell by $0.27 per ADS, or 14.44%, to close at $1.60 per ADS on May 22, 2026.
On October 12, 2026, it was reported that the Chaoyang Branch of the Beijing Municipal Public Security Bureau had opened a criminal investigation into CreditEase and had imposed "criminal coercive measures" on several suspects, including Defendant Tang and his wife, Zhao Mei. On this news, the price of Yiren ADSs declined $0.44 per ADS, or approximately 44.1%, to close at $0.56 per ADS on October 12, 2026.
On October 13, 2026, following the October 12 Press Release and October 13 Press Release, the price of Yiren ADSs continued to decline, falling an additional $0.1050, or approximately 18.7%, to close at $0.46 per ADS on October 13, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Yiren Digital's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Yiren Digital class action, go to www.faruqilaw.com/YRD or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Yiren Digital Securities Class Action Lawsuit:
What is the Yiren Digital securities fraud lawsuit about?
The lawsuit alleges that Yiren Digital Ltd. and certain of its officers and directors made materially false and/or misleading statements during the Class Period regarding the Company's financial condition and its relationship with CreditEase, its controlling shareholder. Specifically, the complaint alleges that CreditEase and its affiliates, all allegedly controlled by Defendant Tang Ning, were experiencing severe financial distress that impaired their ability to meet their financial obligations, and that billions of RMB owed to Yiren Digital by CreditEase affiliates were subject to significant credit risk that was not adequately disclosed. The lawsuit further alleges that the Company was not operationally or financially separate from CreditEase, given their shared leadership, Yiren Digital's dependence on CreditEase, and the Company's relationships with CreditEase affiliates whose products allegedly defaulted. Additionally, the complaint alleges that Defendant Tang was exposed to material legal and regulatory risk, including potential criminal liability, arising from CreditEase's conduct, which was not disclosed to investors during the Class Period.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired American Depositary Shares ("ADSs") of Yiren Digital Ltd. (NYSE: YRD) between April 29, 2026 and October 13, 2026, inclusive, may be eligible to participate in the lawsuit. Participation in the case is not limited to those who seek appointment as lead plaintiff; any class member who suffered losses during the Class Period may potentially share in any recovery that may be obtained. Investors who believe they may be members of the proposed class are encouraged to contact Faruqi & Faruqi, LLP to discuss their rights and options.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including decisions regarding case strategy, settlement negotiations, and selection of counsel. Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Yiren Digital ADSs during the Class Period and suffered a loss may move the court for appointment as lead plaintiff. The deadline to file a motion for appointment as lead plaintiff is December 28, 2026. Importantly, investors are not required to seek appointment as lead plaintiff in order to be eligible to participate in, or share in any recovery obtained in, the lawsuit.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Yiren Digital securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321882
Source: Faruqi & Faruqi LLP