LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors that purchased or otherwise acquired the securities of Gridsum Holding Inc. (“Gridsum” or the “Company”) (NASDAQ: GSUM) between April 27, 2017 through April 20, 2018, inclusive (the “Class Period”). Gridsum investors have until June 25, 2018 to file a lead plaintiff motion.
To obtain information or actively participate in the class action, please visit Gridsum page on our website at www.glancylaw.com/case/gridsum-holding-inc. Investors that suffered losses on their Gridsum investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to firstname.lastname@example.org.
The complaint filed in this class action alleges that, Defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Gridsum lacked effective internal controls over financial reporting; (2) consequently, Gridsum’s financial statements were inaccurate and misleading, and did not fairly present, in all material respects, the financial condition and results of operations of the Company; and (3) as a result of the foregoing, Gridsum’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
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 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 share price fell $1.17 per share, or 16%, on April 23, 2018, thereby injuring investors.
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If you purchased shares of Gridsum during the Class Period you may move the Court no later than June 25, 2018 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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