Shareholder Alert: Robbins LLP Announces GSX Techedu Inc. (GSX) Sued for Misleading Shareholders
April 22 2020 - 4:46PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of GSX Techedu Inc. (NYSE: GSX) filed a class action
complaint against the Company for alleged violations of the
Securities Exchange Act of 1934 between June 6, 2019 and April 13,
2020. GSX is a technology-driven education company that provides
online K-12 after-school tutoring services in the People's Republic
of China.
If you suffered a loss as a result of GSX's misconduct, click
here.
GSX Techedu Inc. (GSX) Accused of Misleading
Shareholders
According to the complaint, in June 2019, GSX touted its rapid
growth in student enrollment and profitability and stated that the
Company "pride[s] [itself] of [its] rigorous and systematic teacher
selection and coaching process" in its initial public offering
documents. GSX then continued to report strong revenue and
enrollment growth throughout the relevant period, attributing it to
improved "corporate and organizational capabilities." However, on
February 25, 2020, Grizzly Research LLC issued a report alleging
GSX "ha[d] been drastically overstating its profitability in its US
public filings, especially for 2018" as well as indications that
GSX used fake student enrollment mechanisms to boost student count
and did not hire teachers using the high-quality recruitment they
had touted. Finally, on April 14, 2020, a report published by
Citron Research further alleged that GSX's "2019 revenue was
overstated by 70%" and that GSX's "filings are riddled with
suspicious transactions." Following these disclosures, GSX's stock
price had a total decline of 31% to close at $31.20 per share on
April 14, 2020.
GSX Techedu Inc. (GSX) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20200422006049/en/
Leo Kandinov Robbins LLP lkandinov@robbinsllp.com (619) 525-3990
or Toll Free (800) 350-6003 www.robbinsllp.com
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