Shareholder Alert: Robbins LLP Announces It Is Investigating GSX Techedu Inc. (GSX) for Misleading Shareholders

Shareholder rights law firm Robbins LLP announces that it is investigating GSX Techedu Inc. (NYSE: GSX) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders.

Metadata
Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Thursday, June 4, 2020
Information
Tags: 
Legal, Professional services, Stock market, GSX, Financial economics, Fiduciary, Finance, Stock, New York Stock Exchange, Economy
Geotags: 
United States, California
⚠generated by AI ↴
Summary
Key Points: 
  • Shareholder rights law firm Robbins LLP announces that it is investigating GSX Techedu Inc. (NYSE: GSX) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders.
  • 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 .
  • Following these disclosures, GSX's stock price had a total decline of 31% to close at $31.20 per share on April 14, 2020.


Shareholder rights law firm Robbins LLP announces that it is investigating GSX Techedu Inc. (NYSE: GSX) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. 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 Overstating Its Profitability

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. 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

[email protected]

Shareholder Information Form

Want to be notified if a class action against GSX settles? Want to receive free alerts about companies engaged in wrongdoing? Sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

Copyright: 
Copyright Business Wire 2020