Archived Investigations
Gaotu Techedu Inc. f/k/a GSX Techedu Inc. (NYSE: GOTU, GSX)
Company Name:aotu Techedu Inc. f/k/a GSX Techedu Inc.
Stock Symbol:NYSE: GOTU, GSX
Court:Eastern District of New York
Class Period Start:03/05/2021
Class Period End (inclusive):07/23/2021
Filing Deadline:The deadline has passed.
January 2, 2023
Gaotu and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On July 23, 2021, Media sources reported that China was prohibiting tutoring for profit in core school subjects in order to ease the financial burden on families, which would be likely to have a negative effect on China’s substantial private tutoring industry.
On this news, ADSs of Gaotu fell 63.3% to close at $3.52 per ADS on July 23, 2021.
The case is Zhang v. Gaotu Techedu Inc. f/k/a GSX Techedu Inc., et al., No. 22-cv-07966.