NEW YORK--(BUSINESS WIRE)--Labaton Sucharow LLP, a leading and award winning investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of GSX Techedu Inc (Ticker: GSX) resulting from allegations that GSX may have issued materially misleading business information to the investing public.
GSX Techedu Inc. is a technology-driven education company, and provides online K-12 after-school tutoring services in the People’s Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides English courses for children in kindergarten; and courses that help children in grade one through grade seven.
On April 14, Citron Research published a report saying “GSX is overstating revenue by up to 70% and should immediately halt trading and launch an internal investigation.” Citron also noted, "They are not even in a 'fake it till you make it' situation. Their forward growth trajectory is as foolish and fraudulent as their previous financials.”
When asked to comment, GSX Techedu said the company is in a quiet period ahead of its quarterly report. GSX has not announced a date yet.
On this news, GSX stock is falling 3.5% pre-market.
If you are a ADS, option or derivative holder that suffered losses in GSX, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at firstname.lastname@example.org
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