Time-Sensitive: Allegations Focus on Undisclosed Related Party Transactions That Triggered Auditor Removal
NEW YORK, April 15, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in Lufax Holding Ltd (NYSE: LU) of a pending securities class action. Class Period: April 7, 2023 through January 26, 2025. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
Lufax ADS holders lost $0.63 per share over three consecutive trading sessions after the Company revealed PricewaterhouseCoopers withdrew its audit opinions for fiscal years 2022 and 2023. The Court has set May 20, 2026 as the deadline to apply for lead plaintiff appointment.
The Alleged 'Subject Transactions' and Auditor Breakdown
The lawsuit asserts that Lufax engaged in possible related party transactions that were never properly disclosed to shareholders. These so-called "Subject Transactions" surfaced only after PwC received information during an October 2024 conversation with a senior executive that raised serious red flags. PwC escalated its concerns to the Audit Committee in November 2024, and by December 2024 demanded an expert independent investigation. As alleged in the action, the Audit Committee's subsequent refusal to share investigation conclusions with PwC fractured the auditor relationship entirely.
Why Undisclosed Related Party Dealings Allegedly Matter to Investors
- PwC stated it could no longer rely on management representations provided during the 2022 and 2023 audits
- The auditor withdrew consent for incorporation of its prior audit opinions in any current or future Company filings
- An independent investigation and supplemental investigation were launched, engaging a leading international law firm and forensic accounting experts
- The re-audit confirmed line items were inaccurately recorded, overstating 2022 total income by RMB 493.8 million
- Net profit for 2022 was reduced by RMB 917.0 million and for 2023 by RMB 81.4 million after restatement
Concealed Dealings and the Erosion of Audit Integrity
As alleged, the Company's failure to transparently address related party transactions created a cascade of consequences. PwC ZT, the PCAOB-registered auditor, separately communicated that it could not consent to the use of its prior opinions and cited independence concerns with the Audit Committee itself. The action claims that investors who purchased LU shares during the Class Period did so without knowledge that critical financial relationships were operating outside proper disclosure channels.
"Investors deserve transparency about material risks that could affect their investments. When an auditor of PwC's stature withdraws its opinions and states it can no longer rely on management representations, shareholders must understand the full scope of what was concealed." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering damages or call (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
