NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, against Gridsum Holding Inc. (“Gridsum” or the “Company”) (NASDAQ: GSUM) on behalf of investors that acquired Gridsum securities during the period from April 27, 2017 through April 20, 2018 (the “Class Period”), seeking recovery of damages for alleged violations of the federal securities laws. Pursuant to applicable law, investors have until June 25, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On April 23, 2018, Gridsum issued a press release announcing that its independent registered public accounting firm, PricewaterhouseCoopers Zhong Tian LLP (“PwC”), notified the Company’s Board of Directors and Audit Committee that PwC’s audit report for the Company’s financial statements for fiscal year 2016 should no longer be relied upon. PwC identified certain issues related to revenue recognition, cash flow, cost, expense items, and their underlying documentation. In connection with these developments, the Company claimed that it estimates a 2016 revenue impact of approximately RMB 2 million and a 2016 expense impact of approximately RMB 6 million.
On this news, Gridsum’s American Depositary Receipt price fell from $7.29 to close at $6.12 on April 23, 2018 (a decline of $1.17 or approximately 16%).
If you purchased or otherwise acquired Gridsum securities, have information or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form to discuss your rights or interests in this litigation.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.