GlobeNewswire Inc | Sep 16, 2020 04:00PM EDT

September 16, 2020

NEW YORK, Sept. 16, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Wins Finance Holdings, Inc. (NASDAQ: WINS) securities between October 31, 2018 and July 6, 2020 (the Class Period). Investors have until September 23, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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Wins, through its subsidiaries, purports to provide financing solutions for small and medium enterprises in the Peoples Republic of China. The Company purports to offer financial guarantees, as well as financial leasing, advisory, consultancy, and agency services in Jinzhong City,Shanxi Province, andBeijing.

In 2014, Wins entered into a RMB 580 million credit agreement with Guohong Asset Management Co., Ltd. (the Guohong Loan), pursuant to which Guohongs repayment was due to Wins in October 2019.

InSeptember 2017, Wins engaged Centurion ZD CPA & Co. (CZD) as its independent registered public accounting firm after dismissing its previous accounting firm.

OnOctober 31, 2019, Wins filed a notification of inability to timely file Form 20-F on Form NT 20-F with the Securities and Exchange Commission(SEC) (the 2019 NT 20-F).

The following trading day, the Companys stock price declined from$11.90to$11.20, or 5.8%.

OnNovember 19, 2019, Wins issued a press release announcing its receipt of a notification letter from the NASDAQ Listing Qualifications and its intent to submit a plan of compliance, adding that the filing of the 2019 20-F was untimely due to the uncertainty over recovery of the Guohong Loan but assuring investors that failure to collect on the loan would not impact the Companys ongoing operations.

Then, onMay 26, 2020, Wins issued a press release announcing that the Company received a delisting determination letter from Nasdaq. The press release stated, in relevant part, [a]s disclosed previously, the Company is working assiduously to complete its delinquent filing with SEC and to regain compliance with the Nasdaq listing rule as soon as possible.

On this news, Winss stock price closed at$7.81per share on May 26, 2020, in contrast to its previous close of$10.06, a decline of 22.3%.

The Companys undisclosed ongoing financial difficultiesincluding non-repayment of the Guohong Loanand material control weaknesses came to a head onJune 30, 2020, when CZD resigned as the Companys independent auditor after less than three years in that role. OnJuly 6, 2020, Wins issued a press release announcing CZDs resignation.

On this news, Winss stock price fell$2.06per share, or 6.1%, to close at$31.70per share onJuly 7, 2020.

The Complaint, filed on July 24, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Companys business, operational, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the ultimate repayment of theRMB 580 millionGuohong Loan was highly uncertain; (ii) nonpayment of the Guohong Loan would have a significant impact on the Companys financial and operating condition; (iii) weaknesses in Winss internal control over its financial reporting persisted despite the Companys repeated assurances to investors that it was taking steps to remediate these weaknesses; (iv) the foregoing issues, among others, made the resignation of Winss independent auditor foreseeably likely; and (v) as a result, the Companys public statements were materially false and misleading at all relevant times.

If you purchased Wins Finance securities during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:Bragar Eagel & Squire, P.C.Brandon WalkerMelissa Fortunato, Esq.Marion Passmore, Esq.(212) 355-4648investigations@bespc.comwww.bespc.com