SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action case has been filed on behalf of purchasers of Sunlands Technology Group (NYSE:STG) American Depositary Shares (“ADSs”) pursuant and/or traceable to the Company’s March 2018 initial public offering (“IPO”) in the U.S. District Court for the Eastern District of New York, captioned Horowitz v. Sunlands Technology Group, No. 1:19-cv-03744, and assigned to Judge Block. The complaint charges Sunlands, certain of its officers and directors and the underwriters of the IPO with violations of the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Sunlands ADSs in the IPO to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions must be filed with the court no later than August 26, 2019.
The complaint alleges that the Registration Statement issued in connection with the IPO failed to disclose that Sunlands’ student enrollment was declining, Sunlands’ gross billings were declining, and Sunlands’ marketing tactics were not as robust as described in the Registration Statement. On May 28, 2019, the Company announced its unaudited first quarter 2019 financial results. Sunlands reported a 34% decrease in student enrollment and a 28% decrease in gross billings for the quarter, stating that, “[a]gainst the backdrop of the seasonal slowdown due to the Chinese New Year holiday period, softer marketing tactics and expanded trial programs, [Sunlands’] new student enrollments declined, and gross billings were down 28.6% year-over-year.” Since the IPO, the price of Sunlands ADSs has plummeted – by the end of June 2019, the shares were trading at around $2.28 per share, or more than 80% below the IPO price of $11.50 per share.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.