Lufax Holding Ltd Class Action Lawsuit - LU

Introduction to Lufax Holding Ltd (LU) Securities Class Action Lawsuit

A securities fraud class action has been filed against Lufax Holding Ltd (NYSE: LU) and two of its executives for alleged misrepresentations in violation of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and Section 20(a) control person liability made between April 7, 2023 and January 26, 2025. Investors allege that the company repeatedly assured shareholders that its internal controls and financial reporting were effective, while certain financial results were materially misstated. In January 2025, the company disclosed that its auditor PricewaterhouseCoopers had raised significant concerns about financial disclosures and that its audit opinions for 2022 and 2023 Annual Reports could no longer be relied upon. The subsequent restatement revealed that net profit had been overstated by RMB 917.0 million for 2022 and RMB 81.4 million for 2023, causing the stock to decline by approximately 22% over three trading sessions.

Lufax Holding Ltd (LU) Securities Lawsuit Case Details

Case Name: Kam Wai Mau v. Lufax Holding Ltd, et al.

Case No.: 2:26-cv-03071

Jurisdiction: U.S. District Court, Central District of California

Filed on: March 21, 2026

Lufax Holding Ltd (LU) Company Profile

Lufax describes itself as a leading financial services enabler for small business owners in China, operating in retail credit and credit enablement, with headquarters in Shanghai's Pudong New District, and is a publicly traded financial technology holding company incorporated in the Cayman Islands.

Lufax Holding Ltd (LU) Securities Lawsuit Class Period

April 7, 2023 – January 26, 2025, inclusive.

Investors who purchased or otherwise acquired Lufax Holding Ltd securities publicly traded on the NYSE during the Class Period and suffered damages may be eligible to join the Lufax Holding Ltd (LU) class action lawsuit, including American Depositary Shares.

Allegations in the Lufax Holding Ltd (LU) Securities Class Action Lawsuit

According to the complaint, Lufax Holding Ltd, Chief Executive Officer Yong Suk Cho, and Chief Financial Officer David Siu Kam Choy allegedly misled investors about the effectiveness of the company's internal controls and the accuracy of its financial reporting throughout the class period, by issuing false and misleading statements and failing to disclose material adverse facts.

On April 7, 2023, when Lufax Holding Ltd filed its 2022 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission, management with the participation of the CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2022, ensuring that information required under the Exchange Act was properly recorded, processed, summarized and reported within specified timeframes. Management further concluded that internal control over financial reporting was effective as of that date.

The following year, on April 23, 2024, management issued nearly identical assurances in the company's 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Once again, with the participation of the CEO and CFO, management concluded that disclosure controls and procedures were effective as of December 31, 2023, and that internal control over financial reporting was effective as of that date.

The complaint alleges these repeated assurances created a false picture of financial reliability and operational integrity, including material misstatements in financial reports. Investors allege that behind these confident statements, Lufax Holding Ltd actually lacked adequate internal controls and that certain financial results were materially misstated, in contravention of Section 10(b) and Rule 10b-5. The complaint contends that defendants' statements about the company's business, operations, and prospects were materially false and misleading and lacked a reasonable basis at all relevant times.

The Truth Emerges

The alleged deception began to unravel on January 27, 2025, when Lufax Holding Ltd filed a Form 6-K current report with the U.S. Securities and Exchange Commission revealing that it had fired PricewaterhouseCoopers as its auditor. The disclosure revealed that PwC had significant concerns about Lufax Holding Ltd's financial disclosures, particularly the 2022 and 2023 Annual Reports. The concerns were serious enough that PwC stated its audit opinions for those years and those Annual Reports should no longer be relied upon. PwC disclosed that on October 25, 2024, it received information during a conversation with a then-current senior executive that raised concerns about certain possible related party transactions of the company.

The full extent of the financial misstatements became clear on February 17, 2026, when Lufax Holding Ltd filed its 2024 Annual Report on Form 20-F. Independent auditors following a re-audit found that certain line items were inaccurately recorded in the consolidated financial statements, and restated its financial results. The overstatement of total income for 2022 was RMB 493.8 million, while total income for 2023 was understated by RMB 33.3 million. These errors resulted in a decrease in net profit of RMB 917.0 million for 2022 and RMB 81.4 million for 2023. These revelations directly contradicted management's prior assurances that internal controls were effective and financial reporting was accurate.

Market Reaction

On January 27, 2025, when news of the auditor dismissal and concerns became public, Lufax Holding Ltd ADSs fell $0.40 per ADS, a decline of 13.8%, closing at $2.49 per ADS on the NYSE. The selloff continued the following day as Lufax Holding Ltd ADSs fell a further $0.17 per ADS, down 6.82%, to close at $2.32 per ADS on January 28, 2025. On January 29, 2025, the stock declined an additional $0.06 per ADS, or 2.58%, closing at $2.26 per ADS, reflecting an approximately 22% decline across three trading sessions.

Next Steps

● The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

● The Court will then consider motion for class certification.

● The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

Check Eligibility

✓ Free case evaluation
✓ No cost or obligation
✓ See if you qualify

First Name *

Last Name *

Email *

Phone

Estimated Loss

Number of Shares

Purchase Date

Full Name

Submitting this form does not create an attorney-client relationship. Your information is confidential.

Or contact us directly:

(212) 363-7500 [email protected]

Never Miss Another Deadline

Choose your preferred way to stay informed of new case launches and settlement deadlines.

Scan the QR code or click the button to join.

Join on WhatsApp

First Name *

Last Name *

Email *

Full Name

Submitting this form does not create an attorney-client relationship. Your information is confidential.

[email protected] (212) 363-7500

Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

I have reviewed a complaint filed in the action.
I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.
I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.
My transaction(s) in Lufax Holding Ltd which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.
Within the last 3 years,
I have not sought to serve nor have I served as a class representative in any federal securities fraud case. I have sought to serve as a class representative in
I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

Are you US Citizen?

Yes. I certify under penalty of perjury that the foregoing is true and correct. Executed this No. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

Clear

Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against Lufax Holding Ltd. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

I have reviewed the complaint linked in paragraph 1