b'Defendants answered on October 30, 2020. Onsuch as whether and how many of its platform users February 24, 2021, plaintiffs moved for leave to filecharged excessive interest rates or were unlicensed, in a second amended complaint. The court stayedviolation of the Interim Measures.discovery and vacated other case deadlines pendingOn November 17, 2017, Jianpu filed its final IPO resolution of that motion.Registration Statement and Prospectus and sold 22.5million American Depository Shares at $8.00 Panther Partners Incorporated v. Jianpuper share, raising net proceeds of approximately Technology Inc., Case No. 18 CIV. 9848$164.9million. On December 1, 2017, the CBRC issued a (PGG), 2020 WL 5757628 (S.D.N.Y.series of financial regulations officially prohibiting loans with interest rates above 36% and banning unlicensed Sept. 27, 2020)organizations and individuals from engaging in the Noncompliance With Chinese Regulations lending business. On December 8, 2017, Chinese regulators issued further regulations that required P2P Jianpu Technology Inc. (Jianpu), is a Beijing-basedcompanies to comply with the 2016 Interim Measures to holding company whose stock is traded on the U.S.qualify for licensing. stock exchange, that, through its subsidiaries, operates an online platform that provides users with research andOn December 12, 2017, Jianpus top executives recommendations on financial products in the Peoplesdisclosed on a conference call that non-licensed Republic of China (PRC). The companys revenues arefinancial institutions were responsible for around 12% of primarily generated from fees paid by financial service[Jianpus] total revenue in November. On May 29 2018, providers for loan recommendation services.Jianpu issued a press release announcing its first quarter 2018 financial results, showing growth in revenue from Beginning in August 2016, the China Bankingloan recommendation services slowed to an increase of Regulatory Commission (CBRC) began issuing 46.5% year-over-year from 429% year-over-year in the interim regulations (the Interim Measures) prohibitingprevious quarter. This trend continued throughout fiscal peer-to-peer (P2P) companies from engaging inyear 2018, resulting in a 9.3% year-over-year decrease certain business activities, capping the amounts theyin revenue from loan recommendation services. can lend, and requiring them to obtain operatingJianpu stated that the decrease in annual revenue was licenses and to deposit investor funds in escrowprimarily due to the decrease in the number of loan accounts at qualified custodial banks. Specifically,applications of the Companys platform which was in April 2017, the CBRC issued interim regulationsattributable in part to adjustments pertaining to the new prohibiting annualized interest rates and fees in excessregulatory framework since December 2017. Jianpus of 36% and stating local authorities and regulatorsshare price continued to decline. As of the filing date of should strictly enforce the Interim Measures. plaintiffs complaint, Jianpus ADSs traded at $4.75a On October 20, 2017, Jianpu filed its first draft foreign40% decline from its IPO share price. entity Registration Statement and draft ProspectusAn investor brought a putative class action against (Offering Documents), in connection with its IPOJianpu, its parent company Rong360 Inc., its directors, in the United States. The Registration Statementits designated New York agents for service, and its IPO acknowledged that while a major growth factor wasunderwriters, alleging violations of Sections 11, 12(a)its favorable positioning in the Chinese regulatory(2) and 15 of the 1933 Act. Plaintiff alleged that the IPO environment, and the proliferation of new financialOffering Documents failed to disclose the extent to service providers, its business, financial condition,which existing regulations in China, as well as the risk and results of operations could be negatively affectedof heightened regulatory enforcement, threatened by regulatory uncertainties to online consumerJianpus revenues from loan recommendation services finance in China and the possibility that Jianpu could the source of 80% of its revenues at the time of be subjected to new Chinese laws and regulationsthe IPO. The complaint alleged two categories of targeting financial service providers engaging inmisstatements: (1) that the Registration Statement failed loan recommendation services on its platform. Theto disclose Jianpus exposure to service providers Registration Statement stated that the Chineseutilizing its platform that would be subject to the Interim government had not yet adopted a clear regulatoryMeasures and (2) that the Registration Statement failed framework but warned the CBRC might adopt a moreto disclose that a material portion of the loans offered stringent regulatory framework and could enhanceon Jianpus platforms had interest rates above 36%, as existing regulations related to fees and interest chargedprohibited by the Interim Measures. by financial service providers and the prohibition of unlicensed providers. The Registration Statement didDefendants moved to dismiss, and the court denied not disclose the extent of Jianpus existing liability, the motion in full, holding that plaintiff adequately pled actionable omissions as to pre-IPO violations 76'