LOS ANGELES, May 29, 2020 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to fcruz@frankcruzlaw.com.
iAnthus Capital Holdings, Inc (OTC: ITHUF)
Class Period: May 14, 2018 – April 6, 2020
Lead Plaintiff Deadline: June 15, 2020
On April 6, 2020, iAnthus disclosed that it had failed to make certain interest payments, citing the "decline in the overall public equity cannabis markets, coupled with the extraordinary market conditions that began in Q1 2020 due to the novel coronavirus." iAnthus also revealed an internal investigation regarding related party transactions involving the Company's Chief Executive Officer, Hadley Ford.
On this news, the Company's share price fell $0.29, or over 62%, to close at $0.179 per share on April 6, 2020, on unusually heavy trading volume.
The complaint alleges that iAnthus failed to disclose that they had the ability to withhold use of the interest payment escrow or that the interest escrow payment was exhausted, diminished, or otherwise unavailable to satisfy the Company's March 31, 2020 interest payment obligations.
GSX Techedu Inc. (NYSE: GSX)
Class Period: June 6, 2019 – April 13, 2020
Lead Plaintiff Deadline: June 16, 2020
On February 25, 2020, Grizzly Research published a report alleging, among other things, that the Company “has been drastically overstating its profitability in its US public filings, especially for 2018” and that Grizzly Research had “found multiple strong indications of past and current order ‘brushing,’” which are “essentially fake student enrollments to boost student count.”
On this news, the price of GSX’s American Depositary Shares (“ADSs”) fell $1.33, or nearly 3%, to close at $44.09 per share on February 25, 2020.
Then, on April 14, 2020, Citron Research issued a report entitled "GSX Techedu Inc – The Most Blatant Chinese Stock Fraud since 2011," alleging that the Company "is overstating revenue by up to 70% and should immediately halt trading and launch an internal investigation."
On this news, the price of GSX’s ADSs fell $0.20 per share, or 0.64%, to close at $31.20 on April 14, 2020.
The complaint alleges that throughout the Class Period, GSX made false and/or misleading statements and/or failed to disclose: (i) that GSX overstated its profitability, revenue, student enrollment figures, teacher qualifications, and teacher selection process; (ii) that the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Company’s financial results; and (iii) that as a result, the Company’s public statements were materially false and misleading at all relevant times.
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To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com