LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming June 16, 2020 deadline to file a lead plaintiff motion in the class action 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”).
If you are a shareholder who suffered a loss, click here to participate.
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.
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If you purchased or otherwise acquired GSX Techedu securities during the Class Period, you may move the Court no later than June 16, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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