9F ($JFU) Investor Settlement
9F has reached a tentative settlement to resolve investor claims tied to its arrangement with PICC, allegedly disguised borrower fees, and the later revenue fallout when that arrangement broke down.
Outline:
Before August 2019, 9F’s lending business was a major part of the company even as Chinese rules tightened around borrower fees. Around April 2019, 9F worked with PICC on a structure that used insurance premiums to continue collecting loan-facilitation fees while presenting borrowing costs as compliant with legal limits, but the arrangement later collapsed when PICC disputed it, withheld funds, and triggered a sharp revenue decline.
Timeline:
April 2, 2019: China tightened rules prohibiting loan-facilitation institutions from collecting borrower fees.
August 14, 2019: 9F’s IPO registration became effective.
June 12, 2020: 9F disclosed that PICC had withheld RMB 2.2 billion and challenged the agreement’s validity.
June 24, 2020: 9F disclosed that PICC had collected all loan-facilitation fees from borrowers and remitted 9F’s share.
September 29, 2020: 9F reported a sharp revenue decline linked to the PICC dispute.
Background:
9F operated an online lending platform in China and earned loan-facilitation fees from helping borrowers obtain loans.
Before the IPO, Chinese regulators tightened restrictions on lending intermediaries. The new rules limited total borrowing costs and restricted how companies like 9F could collect fees from borrowers.
Investors point to 9F’s arrangement with PICC, under which loan-facilitation fees were allegedly collected through insurance premiums. They also argue that some borrowers continued to pay total borrowing costs above the 36% limit despite the company’s statements regarding compliance.
The arrangement later broke down. In June 2020, 9F disclosed that PICC had withheld RMB 2.2 billion in service fees and challenged the agreement. The company later acknowledged that PICC had collected all loan-facilitation fees from borrowers and remitted 9F’s share.
Investors argued that those disclosures revealed risks in 9F’s business model and the revenue impact that followed.
What Can Investors Expect Now?
9F has reached a tentative settlement to resolve investor claims tied to its arrangement with PICC, borrower fees collected through insurance premiums, and the revenue fallout that followed when the arrangement broke down.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement.
Frequently Asked Questions
all purchasers of 9F’s American Depositary Shares (“ADSs”) from August 14, 2019, to September 29, 2020, inclusive
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.