360 DigiTech Wins Dismissal of Securities Fraud Suit

Skadden secured a rare bench dismissal of a putative securities fraud class action against China-based fintech company 360 DigiTech. The plaintiffs alleged that 360 DigiTech had misrepresented its compliance with Chinese regulations governing collection of user data. On July 25, 2022, following oral argument, Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York granted the company’s motion to dismiss all claims. The court agreed that the plaintiffs failed to allege that any of the company’s statements were false or misleading when made, and the company adequately warned of the shifting regulatory regime and attendant risks.