GOTU Lawsuit – Gaotu Techedu Inc.
A lawsuit has been filed in the Eastern District of New York against Gaotu Techedu Inc., (GOTU:NYSE) because China was barring tutoring for profit in core school subjects and the policy change would restrict foreign investment in a sector that had become essential to success in Chinese school exams.
GOTU stock fell 63.25%.
Is There A Gaotu Techedu Lawsuit?
Yes. There is a Class Action Lawsuit. The Gaotu Techedu Class Action Lawsuit (GOTU:NYSE) was filed on December 30, 2022 at the Eastern District of New York on behalf of the shareholders.
On July 23, 2021, Reuters reported that China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, news that sent shockwaves through its vast private education sector and share prices plunging.
The policy change, which also restricts foreign investment in a sector that had become essential to success in Chinese school exams, was contained in a government document widely circulated on Friday and verified by sources.
The move threatens to decimate China’s $120 billion private tutoring industry and triggered a heavy selloff in shares of tutoring firms traded in Hong Kong and New York including New Oriental Education & Technology Group and Koolearn Technology Holding Ltd.
All institutions offering tutoring on the school curriculum will be registered as nonprofit organisations, and no new licences will be granted, according to the document, which says it was distributed by China’s State Council, or cabinet, to
local governments and is dated July 19.
On this news, the price of Gaotu’s ADSs fell 63.3% to close at $3.52 per ADS on July 23, 2021, damaging investors.
Gaotu Techedu Class Action Lawsuit, What Is It about?
The Gaotu Techedu Class Action Lawsuit (NYSE:GOTU) (Gaotu Techedu Class Action Lawsuit) was filed on December 30, 2022.
On July 23, 2021, Reuters reported that China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, news that sent shockwaves through its vast private education sector and share prices plunging.
On this news, the price of Gaotu’s ADSs fell 63.3% to close at $3.52 per ADS on July 23, 2021, damaging investors.
What Is The Deadline For The GOTU Lawsuit?
The deadline for a Lead Plaintiff is February 28, 2023. As a shareholder, you also want to submit your information as soon as you can, so you do not miss out on this class action and you will receive regular updates on the progress of the case, including a settlement announcement.
How Much Was The Stock Loss To GOTU Stock?
Shareholders who held Gaotu’s ADSs fell 63.3% to close at $3.52 per ADS on July 23, 2021, damaging investors.
What Is Lawsuit Complaint Against Gaotu Techedu About?
A GOTU class action lawsuit (Gaotu Techedu Class Action Lawsuit) has been filed on behalf of investors who purchased Gaotu Techedu Class Action Lawsuit (GOTU) securities between March 5, 2021 – July 23, 2021, inclusive. For more on the GOTU Lawsuit please contact us today.
According to the Gaotu Techedu lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(1) China was barring tutoring for profit in core school subjects and the policy change would restrict foreign investment in a sector that had become essential to success in Chinese school exams; and
(2) the impact such regulations would have on Gaotu’s operations and profitability and the value of Company securities.
If you suffered a loss in GOTU, you have until February 28, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Securities Fraud Class Action Attorneys
Levi & Korsinsky, LLP, have represented Shareholders for over 20 years to secure hundreds of millions of dollars for aggrieved shareholders.
Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States and has built a track record of wining high-stake cases.
What Is Involved In The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired GOTU securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The GOTU class-action lawsuit is directed by the lead plaintiff. To litigate the Gaotu Techedu Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Gaotu Techedu Inc.
What Does Gaotu Techedu Do?
Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People’s Republic of China.
Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science.
The company also provides foreign language courses comprising English and Japanese, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher’s qualification, the Chartered Financial Analyst designation, securities qualification exams, and other exams.
In addition, it offers admission courses for admission tests, including national graduate entrance examination, civil service examinations, and others; and Gaotu App, an interactive learning app to various student groups.
Further, the company provides other courses, including offline business consulting courses to enhance management skills for principals and other officers of private education institutions; and develops and sells smart devices, such as multi-function translation pen, as well as teaching and learning tools, which includes smart learning machine.
The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China.
Deadline of Submission is Until February 28, 2023
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