A lawsuit was filed on behalf of investors in Gaotu Techedu Inc. (NYSE:GOTU) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/20/2023 -- An investor, who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU), filed a lawsuit over alleged violations of Federal Securities Laws by Gaotu Techedu Inc. /k/a GSX Techedu Inc.
Investors who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU) have certain options and for certain investors are short and strict deadlines running. Deadline: February 28, 2023. NYSE: GOTU investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
China based Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. On July 25, 2021, China released new regulations that ban companies that teach school curriculums from making profits, raising capital or going public.
Shares of Gaotu Techedu Inc. (NYSE: GOTU) declined from $142.7 per share in January 2021 to as low as $2.25 per share on August 23, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Gaotu Techedu Inc. (NYSE: GOTU) common shares between March 22, 2021 and March 29, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 22, 2021 and March 29, 2021, the Defendants Goldman Sachs Group Inc. and Morgan Stanley traded while in possession of material non-public information and that Defendants obtained the material non-public information pursuant to their agreements with Archegos Capital Management's ("Archegos") and as a result of their serving as prime brokers of Archegos, that Defendants knew, recklessly disregarded, or should have known that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep the information confidential, that nevertheless, while in possession of material, non-public adverse information, Defendants collectively sold billions of dollars' worth of Gaotu Techedu Inc. (GOTU) shares.
The plaintiff claims that between March 5, 2021 and July 23, 2021, the defendants made false and/or misleading statements and/or failed to disclose, among other things, 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.
Those who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU) have certain options and should contact the Shareholders Foundation.
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