NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Zhangmen Education Inc. (“Zhangmen” or the “Company”) (NYSE: ZME) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Zhangmen securities pursuant and/or traceable to the June 8, 2021 IPO. Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
In June 2021, Zhangmen, an education company focused on providing personalized online courses to K-12 students in China, conducted its initial public offering ("IPO"), selling 4,166,450 ADSs at a price of $11.50 per ADS.
Then, on July 23, 2021 China revealed an extensive overhaul of its education sector, prohibiting companies that teach the school curriculum from making profits, raising capital or going public. This effectively ended China’s $120 billion private tutoring industry.
On July 26, 2021, Zhangmen issued a release stating that these new guidelines were likely "to have material impacts on our existing business operations, financial condition and corporate structure."
Then, on November 19, 2021, Zhangmen announced that its independent auditor had resigned.
On November 19, 2021, the Company’s share price closed at $1.47 per ADS, an 80% decline from the IPO price.
If you purchased or otherwise acquired Zhangmen shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Alexandra Raymond by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.