GSX Techedu Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired GSX Techedu Inc. (“GSX” or the “Company”) (NYSE: GSX) securities during the period from June 6, 2019 through April 13, 2020 (the “Class Period”). Investors have until June 16, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) GSX overstated its profitability, revenue, student enrollment figures, teacher qualifications, and teacher selection process; and (ii) the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Company’s financial results.
On February 25, 2020, investment research firm Grizzly Research LLC published a report alleging that GSX “has been drastically overstating its profitability in its US public filings, especially for 2018” and that “many of GSX’s reported students do not actually exist.” On this news, the price of GSX ADSs fell $1.33 per share, or 2.9%, to close at $44.09 on February 25, 2020.
On April 14, 2020, investment research firm Citron Research published a report alleging that the Company’s “2019 revenue was overstated by 70%,” that “sales revenues are largely exaggerated,” and that the Company’s “filings are riddled with suspicious transactions.” On this news, the price of GSX ADSs fell $0.20 per share, or 0.6%, to close at $31.20 on April 14, 2020.
If you acquired GSX securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.