INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of GSX Techedu Inc. (GSX) Investors

BENSALEM, Pa.--()--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased GSX Techedu Inc. ("GSX" or the Company") (NYSE: GSX) securities between June 6, 2019, and April 13, 2020, inclusive (the “Class Period”). GSX investors have until June 16, 2020 to file a lead plaintiff motion.

Investors suffering losses on their GSX 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 howardsmith@howardsmithlaw.com.

On February 25, 2020, Grizzly Research published a report alleging, among other things, that the Company “has been drastically overstating its profitability in its US public filings, especially for 2018” and that Grizzly Research had “found multiple strong indications of past and current order ‘brushing,’” which are “essentially fake student enrollments to boost student count.”

On this news, the price of GSX’s American Depositary Shares (“ADSs”) fell $1.33, or nearly 3%, to close at $44.09 per share on February 25, 2020.

Then, on April 14, 2020, Citron Research issued a report entitled "GSX Techedu Inc – The Most Blatant Chinese Stock Fraud since 2011," alleging that the Company "is overstating revenue by up to 70% and should immediately halt trading and launch an internal investigation."

On this news, the price of GSX’s ADSs fell $0.20 per share, or 0.64%, to close at $31.20 on April 14, 2020.

The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (i) that GSX overstated its profitability, revenue, student enrollment figures, teacher qualifications, and teacher selection process; (ii) that the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Company’s financial results; and (iii) that as a result, the Company’s public statements were materially false and misleading at all relevant times.

If you purchased GSX securities, 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 howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com

Release Summary

INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of GSX Techedu Inc. (GSX) Investors

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Contacts

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com