Lufax Holding (LU) Faces Securities Class Action Amid Firing Auditor Who Raised Red Flags -- Hagens Berma

SAN FRANCISCO, May 15, 2026 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been filed against Lufax Holding Ltd. (NYSE:LU), seeking to represent investors who purchased or otherwise acquired Lufax securities between April 7, 2023 and January 26, 2025. The lawsuit follows Lufax's January 27, 2025 announcement that it removed its auditor after the auditor expressed concerns about potential, undisclosed, related-party transactions. The news triggered a nearly 14% sell-off in the price of Lufax American Depositary Shares. The developments have prompted national shareholders rights firm Hagens Berman to investigate claims that Lufax violated the federal securities laws. The firm urges Lufax investors who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys. View our latest video summary of the allegations: youtu.be/3emhZR18PqQ Lufax Holding Ltd. (LU) Securities Class Action: Lufax, which describes itself as a "leading financial services enabler for small business owners in China," has repeatedly assured investors that its financial statements were prepared in conformity with applicable accounting rules and that its internal control over financial reporting was effective. In contrast to the company's assurances, the class action complaint alleges Lufax lacked adequate internal controls and certain Lufax financial results were materially misstated. Investors began to learn the truth on January 27, 2025. That day, Lufax revealed that its auditor (PricewaterhouseCoopers or "PwC") was orally notified of its removal on January 16, 2025, less than six months after the company's Audit Committee reappointed the firm. Perhaps more concerning to investors, PwC refused to "consent to the incorporation of its prior audit or review opinions in any current or future Company filings" and said that, since it could not rely on the Company's representations in connection with its 2022 and 2023 financial statements, PwC's audit opinions for those years should no longer be relied upon. The market swiftly reacted, sending the price of Lufax shares down about 14% that day. After the Class Period, on April 23, 2025, Lufax revealed that it had engaged in a series of byzantine transactions as the sole investor in certain trusts from May 2023 to June 2024. These involved the trusts' purchases of assets from Lufax-affiliated entities. The company also said that it "entered into these transactions to buy back via these trusts the underlying assets[]" and that, based on the way the transactions were accounted for, its "balance sheet showed an overstatement of both assets and liabilities since the second half of 2023." "We're investigating whether Lufax intentionally violated applicable accounting rules and disclosure requirements when it comes to full transparency about related-party transactions," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation. If you invested in Lufax and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now " Reed Kathrein, 844-916-0895 Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.