LOS ANGELES, Sept. 15, 2022 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming September 19, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired 17 Education & Technology Group Inc. (“17EdTech” or the “Company”) (NASDAQ: YQ) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s December 2020 initial public offering (“IPO” or the “Offering”).
If you suffered a loss on your 17EdTech investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/17-education-technology-group-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On December 4, 2020, 17EdTech held its IPO, selling approximately 27,400,000 American Depository Shares (“ADSs”) at $10.50 per ADS.
On July 23, 2021, the Company stated that China’s new regulations regarding after-school tutoring had “not been published, and the Company has not received official notification of the regulations.”
On this news, 17EdTech’s ADS price fell $3.56, or 39%, to close at $5.64 per ADS on July 23, 2021, thereby injuring investors.
Then, on July 26, 2021, the Company announced that the recently published regulations regarding after-school tutoring “will have a material adverse impact on the Company’s results of operations and prospect.”
On this news, 17EdTech’s ADS price fell $1.48, or 26%, to close at $4.16 per ADS on July 26, 2021.
Then, on August 25, 2021, 17EdTech disclosed that “the Company [had] stopped and will stop offering online Academic AST classes over weekends, national holidays and school break periods.”
On this news, 17EdTech’s ADS price fell 5% to close at $4.48 per ADS on August 25, 2021.
Then, on June 9, 2022, after market hours, the Company announced its first quarter financial results, disclosing a net loss of $3.9 million on sales of $36.82 million – a nearly 50% loss in revenue from the previous year.
On this news, the 17EdTech’s ADS price fell $0.65, or 21.3%, to close at $2.40 on June 10, 2022, thereby injuring investors further.
Since the IPO, 17EdTech’s ADSs have traded as low as $1.54 per ADS, representing an 85% decline from the IPO price.
The complaint filed in this class action alleges that the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired 17EdTech securities pursuant and/or traceable to the IPO, you may move the Court no later than September 19, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
