BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Gridsum Holding Inc. (“Gridsum” or the “Company”) (NASDAQ: GSUM) securities 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.
Investors that suffered losses on their Gridsum investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
The complaint filed in this class action alleges that Defendants 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.
If you purchased shares of Gridsum during the Class Period, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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