Lufax ($LU) Internal Controls and Misstated Profits Case

Investors can submit applications for the lead plaintiff role.

C.D. California

Court

2:26-cv-03071

Case number

04/07/2023

Class period Start

01/26/2026

Class period End

05/20/2026

Lead Plaintiff motion deadline

$LU investors filed a claim against Lufax for allegedly hiding weak internal controls and inaccurate accounting that made its 2022 and 2023 financial results unreliable.
After Lufax disclosed it was removing PwC and PwC said its 2022 and 2023 audit opinions should no longer be relied upon, $LU fell 13.8% on January 27, 2025.
$LU investors can join this case to be notified about potential recovery.
Case Details:

Between April 7, 2023 and January 26, 2025, Lufax told investors its disclosure controls and internal control over financial reporting were effective. It also reported annual results that included net profit of RMB8.775 billion for 2022 and RMB1.034 billion for 2023, reinforcing the company’s financial condition.

However, during this period, investors allege that Lufax experienced control failures and inaccurate accounting related to certain transactions, making those results unreliable. Lufax allegedly failed to disclose that its internal controls over financial reporting were not adequate, that certain transactions and line items were recorded inaccurately, materially misstating parts of its 2022 and 2023 financial results; and that its reported profits and statements about the business lacked a reasonable basis.

Then, on January 27, 2025, the company disclosed it was removing PwC after PwC raised serious concerns about Lufax’s financial disclosures, possible related-party transactions, and the handling and independence of the internal investigation. 

$LU fell $0.40, closing at $2.49. Additional revelations followed on February 17, 2026, including a re-audit that found inaccurate line items and reduced 2022 net profit by RMB917.0 million and 2023 net profit by RMB81.4 million. 

By January 29, 2025, shares had dropped to $2.26, representing a total decline of 21.8% over the correction period.

Based on these events, $LU investors filed a claim against Lufax, alleging the company:
It lacked adequate internal controls over financial reporting.
It recorded certain transactions and line items inaccurately, which materially misstated income, expenses, and net profit for 2022 and 2023.
It misled investors by reporting unreliable profits and assuring the market that its controls and financial disclosures were effective.
Investors argue Lufax misled the market about the reliability of its controls and reported profits, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose,

Omissions

Suspected Party

Management

Security Type

Depository Securities (ADS, ADR, GDR)

Trade Direction

Long

Shock Event Date

01/27/2026

Filing date

03/21/2026

Lead Plaintiff Deadline

05/20/2026

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