SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Gridsum Holding Inc. (NasdaqGS: GSUM) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 27, 2017 and April 20, 2018. Gridsum provides data analysis software for enterprises and government agencies in China.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/gridsum-holding-inc/
Gridsum Accused of Misleading Investors About Its Financial Condition
According to the complaint, Gridsum emphasized strong financial and operating results in its public filings, noting that its "topline maintained its robust growth trajectory" and that the company expects to grow its customer count by 30% to 40% in 2017. Gridsum also noted its continued effectiveness at attracting new clients and touted its net revenue increase of 57.3% year over year to RNB 100.6 million. However, the truth about Gridsum's financial condition was revealed on April 23, 2018, when the company announced that its audit report for the company's financial statements for the year ended December 31, 2016, should not be relied on. Gridsum admitted that its auditor found issues related to revenue recognition, cash flow, cost, expense items, and their underlying documentation. On this news, Gridsum's ADR price fell over 16% to close at $6.12 on April 23, 2018.
Gridsum Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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