Important Notice Regarding Alleged Internal Controls Misrepresentations
NEW YORK, April 30, 2026 /PRNewswire/ -- SueWallSt notifies investors in Lufax Holding Ltd (NYSE: LU) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between April 7, 2023 and January 26, 2025. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
Lufax's 2022 net profit was overstated by RMB 917 million and its 2023 net profit was overstated by RMB 81.4 million, according to restated figures in the Company's 2024 Annual Report. Shares fell from $2.89 to $2.26 over three trading sessions following the corrective disclosure. Applications to serve as lead plaintiff must be filed by May 20, 2026.
The Alleged Internal Controls Methodology
China-based financial services company Lufax reported to investors in consecutive annual filings that its internal controls over financial reporting were "effective" under the COSO 2013 framework. The lawsuit contends these certifications were false when made. A subsequent independent investigation and re-audit revealed that certain line items were inaccurately recorded across two fiscal years.
How Deficient Controls Allegedly Affected Reported Financials
The complaint alleges that the breakdown became apparent only after PricewaterhouseCoopers raised concerns about "Subject Transactions" involving possible undisclosed related party dealings. PwC ultimately withdrew its consent for the Company to rely on its 2022 and 2023 audit opinions, stating it could no longer rely on management representations.
Key Internal Controls Allegations for Shareholders
- The Company certified internal controls as "effective" in both the 2022 and 2023 Annual Reports, while controls were allegedly deficient throughout
- An independent investigation uncovered "Subject Transactions" that were not properly disclosed as possible related party dealings
- The 2022 restatement decreased reported net profit by RMB 917.0 million.
- The 2022 restatement decreased reported net profit by RMB 81.4 million
- PwC withdrew its audit opinions for both fiscal years, an extraordinary step signaling fundamental reliability concerns
- Total overstated income and expense adjustments exceeded RMB 1 billion across the two fiscal years
The Auditor Departure Factor
PwC's January 2025 letter disclosed that a senior executive's oral conversation in October 2024 raised concerns about the Subject Transactions. Despite an independent investigation, the lawsuit asserts, PwC raised questions about the investigation's scope, the Audit Committee's independence, and the Company's remedial actions. The auditor's refusal to allow reliance on its prior work represents a significant break in the chain of financial reporting trust.
"This case presents important questions about internal controls disclosure obligations in the financial services sector. When a company certifies that its controls are effective and an auditor later withdraws its opinions covering two full fiscal years, investors deserve answers about what went wrong and when management knew." -- Joseph E. Levi, Esq.
Submit your information to join this case or contact Joseph E. Levi, Esq. at (888) SueWallSt.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.
CONTACT: SueWallSt Joseph E. Levi, Esq. Ed Korsinsky, Esq. 33 Whitehall Street, 27th Floor New York, NY 10004 jlevi@SueWallSt.com Tel: (888) SueWallSt Fax: (212) 363-7171
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SOURCE SueWallSt.com
