SAN FRANCISCO, June 11, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in GSX Techedu Inc. (NYSE: GSX) to submit their losses now. Only five days remain until the June 16, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives.
Class Period: June 6, 2019 - Apr. 13, 2020
Lead Plaintiff Deadline: June 16, 2020
Sign Up: www.hbsslaw.com/investor-fraud/GSX
Contact An Attorney Now: GSX@hbsslaw.com
844-916-0895
GSX Techedu (GSX) Securities Class Action:
The Complaint alleges Defendants misreported GSX’s financials, student enrollment figures, and teacher qualifications.
Investors began to learn the truth on Feb. 25, 2020, when Grizzly Research published a scathing report, accusing GSX of “drastically overstating its profitability in its US public filings, especially for 2018.” Grizzly claimed that GSX had generated “fake student enrollments to boost student count,” and “fabricated teachers profiles.”
On Apr. 14, 2020, Citron Research similarly charged GSX with fabricating revenues by 70% and overstating net profits by 75%.
Then, on May 7, 2020, Citron published another report, citing “definitive evidence” of GSX “committing securities fraud.” Citron avers that GSX understated customer acquisition costs by moving expenses off its books to shell companies.
On May 18, 2020, Muddy Waters joined in, concluding GSX “is a near-total fraud,” given that 70-80% of its users are fake.
On May 28, 2020, Muddy Waters cited additional evidence of GSX fabricating its user numbers, including an account from a former GSX manager.
Most recently, on June 2, 2020, Grizzly Research followed up with another scathing report. Grizzly claims: (a) GSX’s “publicly claimed student enrollment count and revenue are inflated by approximately 900%;” (b) “GSX appears to be conducting illegal marketing activities on a massive scale;” and, (c) “[w]e believe the company’s core marketing strategy is built around identity theft.”
“We’re focused on investors’ losses and proving GSX deceived investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of GSX and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding GSX should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GSX@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895