The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of GSX Techedu Inc. Investors (G...
April 20 2020 - 9:22PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of persons and entities that
purchased or otherwise acquired GSX Techedu Inc. ("GSX" or the
Company") (NYSE: GSX) securities between June 6, 2019, and April
13, 2020, inclusive (the “Class Period”). GSX investors have
until June 16, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to
participate.
On February 25, 2020, Grizzly Research published a report
alleging, among other things, that the Company “has been
drastically overstating its profitability in its US public filings,
especially for 2018” and that Grizzly Research had “found multiple
strong indications of past and current order ‘brushing,’” which are
“essentially fake student enrollments to boost student count.”
On this news, the price of GSX’s American Depositary Shares
(“ADSs”) fell $1.33, or nearly 3%, to close at $44.09 per share on
February 25, 2020.
Then, on April 14, 2020, Citron Research issued a report
entitled "GSX Techedu Inc – The Most Blatant Chinese Stock Fraud
since 2011," alleging that the Company "is overstating revenue by
up to 70% and should immediately halt trading and launch an
internal investigation."
On this news, the price of GSX’s ADSs fell $0.20 per share, or
0.64%, to close at $31.20 on April 14, 2020.
The complaint alleges that throughout the Class Period,
defendants made false and/or misleading statements and/or failed to
disclose: (i) that GSX overstated its profitability, revenue,
student enrollment figures, teacher qualifications, and teacher
selection process; (ii) that the foregoing, once revealed, was
foreseeably likely to have a material negative impact on the
Company’s financial results; and (iii) that as a result, the
Company’s public statements were materially false and misleading at
all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased GSX securities during the Class Period, you may
move the Court no later than June 16, 2020 to ask the Court
to appoint you as lead plaintiff. To be a member of the Class you
need not take any action at this time; you may retain counsel of
your choice or take no action and remain an absent member of the
Class. If you purchased GSX securities, have information or 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 Frank R. Cruz, of The Law
Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los
Angeles, California 90067 at 310-914-5007, by email to
info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200420005971/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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