16 Apr Lufax Holding Ltd. Securities Fraud Investigation
Peiffer Wolf is investigating Lufax Holding Ltd. (NYSE: LU) for potential violations of SEC Rule 10b-5 and related federal securities laws in connection with alleged material misrepresentations about the company’s financial statements, internal controls, and accounting practices.
Lufax Holding Ltd. is a Chinese consumer finance company that trades on the New York Stock Exchange under the ticker “LU.” A recent federal court complaint claims the company violated SEC Rule 10b-5, which prohibits misleading or omitting crucial information in securities transactions.
If you invested in Lufax securities between April 7, 2023 and January 26, 2025 (the “Class Period”) and suffered losses, Contact Us as soon as possible for a Free Case Evaluation by filling out an online form or by calling 585-310-5140. The deadline to seek lead plaintiff status in this lawsuit is May 20, 2026.
Lufax Stock | What Happened
According to a complaint filed on March 21, 2026, Lufax and its executives made materially false and misleading statements to investors about the company’s financial condition and the integrity of its financial reporting.
Specifically, the lawsuit alleges the following conduct:
- Materially Overstated Net Profit – Lufax allegedly overstated its net profit for fiscal year 2022 by approximately $127 million. Allegedly, Lufax’s own deficient internal controls allowed for the CEO and CFO to create these false financial reports. Senior executives allegedly signed Sarbanes-Oxley Act (SOX) certifications attesting to the accuracy of Lufax’s financial statements and the effectiveness of its internal controls — certifications that are now alleged to have been false when made.
- Concealed Audit Committee Investigation and Departure of PwC – On January 27, 2025, Lufax disclosed it was proposing to remove its long-standing auditor, PricewaterhouseCoopers (“PwC”), following concerns regarding the 2022 and 2023 annual reports. PwC stated that its prior audit opinions for those years could no longer be relied upon due to related party transactions and financial disclosures.
- Failure to Disclose Material Weaknesses – The company allegedly failed to disclose that it had deficient internal controls over financial reporting, certain financial results were misstated, and as a result, any statements about their business operations and prospects were materially false and misleading. These weaknesses called into question the reliability of financial statements issued during the Class Period.
Stock Price Decline and Investor Harm
The complaint further alleges that when information regarding Lufax’s financial condition and internal control issues began to emerge, investors suffered significant losses:
- January 27, 2025: Lufax filed a Form 6-K disclosing that it was proposing to remove PricewaterhouseCoopers as its auditor. The release revealed that PwC had raised significant concerns about the 2022 and 2023 Annual Reports, and that its prior audit opinions could no longer be relied upon. The stock declined approximately 13.8% on this date.
- January 28, 2025: Stock declined an additional 6.82% as the market further digested the implications of Lufax’s auditor removal and the questions raised about prior financial statements.
- January 29, 2025: The stock declined a further 2.58% as the market reacted to the disclosures. The cumulative three-day decline represented approximately 21% of Lufax’s market value.
- February 2026: Lufax filed its 2024 Annual Report, which disclosed that certain prior financial results for 2022 and 2023 were inaccurate, reporting a decrease in net profit of RMB 917.0 million for 2022 and RMB 81.4 million for 2023.
Lufax Lawsuit | Legal Claims
The complaint asserts that the defendants’ actions violated federal securities laws, specifically:
- Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 – These provisions prohibit the use of any manipulative or deceptive device in connection with the purchase or sale of securities. The complaint alleges that Lufax and its executives violated these provisions by making materially false and misleading statements — and omitting material facts — about the company’s financial condition, internal controls, and the reliability of its financial statements.
- Section 20(a) of the Securities Exchange Act of 1934 (Control Person Liability) – Section 20(a) provides that individuals who control a company can be held liable for the company’s securities law violations. The complaint alleges that certain senior executives had the power to control Lufax’s public statements and financial reporting and are therefore liable for the alleged violations.
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Lufax allegedly misled investors by issuing materially false financial statements, concealing an Audit Committee investigation, and failing to disclose weaknesses in its internal controls — all while senior executives signed SOX certifications attesting to the accuracy of the company’s disclosures. After Lufax disclosed the proposed removal of PricewaterhouseCoopers following serious concerns about the reliability of prior audit opinions, investors suffered significant losses.
Peiffer Wolf is currently investigating potential Rule 10b-5 violations involving Lufax securities sold to retail investors. If you purchased Lufax (NYSE: LU) securities during the Class Period and suffered losses, Contact Us for a Free Case Evaluation by filling out an online form or calling 585-310-5140.
Important: The deadline to seek lead plaintiff status in this lawsuit is May 20, 2026.
FAQ
What is the Lufax lawsuit about?
A federal securities complaint alleges that Lufax Holding Ltd. and certain executives violated SEC Rule 10b-5 by making materially false and misleading statements and omitting key facts about the company’s financial condition and accounting practices. The complaint alleges that Lufax overstated its net profit for fiscal year 2022 by approximately $127 million and concealed an Audit Committee investigation involving an international law firm and forensic accountants. Further, Lufax disclosed the proposed removal of its auditor PricewaterhouseCoopers after PwC raised serious concerns about the reliability of prior audit opinions.
Who is included in the Class Period, and what do investors need to have experienced?
The Class Period is April 7, 2023 through January 26, 2025. Investors who purchased Lufax (NYSE: LU) securities during this period and suffered losses may be eligible to participate. The deadline to seek appointment as lead plaintiff is May 20, 2026.
What events are cited as revealing the alleged truth and impacting the stock price?
The complaint notes a series of disclosures in late January 2025.
- On January 27, 2025, Lufax filed a Form 6-K disclosing its intent to remove PricewaterhouseCoopers as auditor, revealing that PwC had raised significant concerns about the 2022 and 2023 Annual Reports and that prior audit opinions could no longer be relied upon.
- The stock fell approximately 13.8% on January 27, 2025.
- Over the following two trading days the stock declined an additional 6.82% and 2.58%, for a cumulative three-day decline of approximately 21%.
Which laws does the complaint allege were violated, and what do they mean?
The complaint asserts violations of:
- Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5, which prohibit making materially false or misleading statements or omitting material facts in connection with the purchase or sale of securities.
- Section 20(a) (control person liability), which can hold individuals who control a company—such as former CEO Andrew Marsh and former President Sanjay Shrestha—liable for the company’s alleged securities law violations.
How can I get a free case evaluation, and where is the case filed?
Peiffer Wolf is investigating these claims on behalf of investors who purchased Lufax securities during the Class Period and may have suffered losses. You can request a Free Case Evaluation by filling out an online form or calling 585-310-5140. The case is pending in the United States District Court for the Central District of California and the lead plaintiff deadline is May 20, 2026.
