A lawsuit was filed on behalf of investors in 17 Education & Technology Group Inc. (NASDAQ:YQ) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/17/2022 -- An investor, who purchased shares of 17 Education & Technology Group Inc. (NASDAQ: YQ), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by 17 Education & Technology Group Inc. in connection with 17EdTech's December 2020 initial public offering (the "IPO").
Investors who purchased shares of 17 Education & Technology Group Inc. (NASDAQ: YQ) have certain options and for certain investors are short and strict deadlines running. Deadline: September 19, 2022. NASDAQ: YQ investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
China based 17 Education & Technology Group Inc., an education technology company, provides education and education technology services in the People's Republic of China. On or around December 4, 2020, 17 Education & Technology Group Inc. conducted its initial public offering, selling 27.4 million American Depositary Shares ("ADSs") priced at $10.50 per ADS.
Then, on June 10, 2022, 17 Education & Technology Group Inc. announced its first quarter financial results, reporting a net loss of $3.9 million alongside a nearly 50% fall in revenue from the prior year to $36.82 million.
Shares of 17 Education & Technology Group Inc. (NASDAQ: YQ) declined from $3.74 per share on June 8, 2022, to as low as $1.42 per share on July 18, 2022.
The plaintiff claims that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) Defendant 17EdTech's K-12 Academic AST Services would end less than a year after the IPO; (2) as part of its ongoing regulatory efforts, Chinese authorities would imminently curtail and/or end 17EdTech's core business; and (3) as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Those who purchased shares of 17 Education & Technology Group Inc. (NASDAQ: YQ) have certain options and should contact the Shareholders Foundation.
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