NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- Institutional investors holding positions in Lufax Holding Ltd (NYSE: LU) during the period April 7, 2023 through January 26, 2025 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Lufax ADSs declined from $2.89 to $2.26 over a series of corrective trading sessions, with net profit restatements totaling RMB 917.0 million (2022) and RMB 81.4 million (2023). The window to apply for lead plaintiff closes on May 20, 2026.
Notice to Institutional Holders
Pension funds, mutual funds, and asset managers that acquired LU shares during the Class Period face potential fiduciary obligations to evaluate recovery options on behalf of beneficiaries. A securities class action contends that Lufax's annual reports for fiscal years 2022 and 2023 contained materially overstated net profit figures and false certifications regarding the effectiveness of internal controls over financial reporting. Institutional holders that passively monitor this litigation without assessing lead plaintiff standing may need to document their rationale for inaction.
ERISA and Fiduciary Considerations
Fiduciaries overseeing portfolios that included LU securities should consider the following:
- The complaint alleges Lufax's reported 2022 net profit was overstated by RMB 917.0 million, and its 2023 net profit was overstated by an additional RMB 81.4 million
- PricewaterhouseCoopers withdrew its 2022 and 2023 audit opinions after raising concerns about undisclosed possible related party transactions
- Institutional holders with the largest financial interest in the litigation are positioned to shape case strategy, select counsel, and negotiate settlement terms as lead plaintiff
- Lead plaintiffs incur no out-of-pocket costs and are reimbursed for reasonable expenses from any recovery
- Fiduciary duty principles may require plan administrators to investigate available legal remedies when portfolio losses stem from alleged securities fraud
- Failing to evaluate lead plaintiff participation could itself raise questions under prudent investor standards
Portfolio Impact Assessment
The lawsuit chronicles that Lufax's external auditor could no longer rely on management representations, triggering a chain of disclosures that erased substantial shareholder value across three consecutive trading sessions in late January 2025. Institutional portfolios with concentrated or significant LU positions during the Class Period may have experienced material tracking error or benchmark deviation as a result.
Contact us for institutional recovery options or call (212) 363-7500.
"Institutional investors play a critical role in securities class actions. Their participation as lead plaintiffs helps ensure vigorous representation of all class members and strengthens the integrity of the recovery process." -- Joseph E. Levi, Esq.
Case Summary
The action asserts that Lufax and certain officers violated Sections 10(b) and 20(a) of the Securities Exchange Act by issuing false certifications and materially misstated financial results. A re-audit confirmed that income and expense line items were inaccurately recorded, resulting in restated figures that revealed the original reports overstated profitability.
INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
