Lawsuit filed for Investors who lost money with shares of Gaotu Techedu Inc. (NYSE: GOTU)

An investor, who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Gaotu Techedu Inc. /k/a GSX Techedu Inc in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU) have certain options and for certain investors are short and strict deadlines running. Deadline: February 28, 2023. YSE: GOTU investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

China based Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Gaotu Techedu Inc. reported that its annual Total Revenue rose from over 2.11 billion CNY in 2019 to over 7.12 billion CNY in 2020, and that its Net Income of 226.63 million CNY in 2019 turned into a Net Loss of over 1.39 billion CNY in 2020.

On July 25, 2021, China released new regulations that ban companies that teach school curriculums from making profits, raising capital or going public.

Shares of Gaotu Techedu Inc. (NYSE: GOTU) declined from $142.7 per share in January 2021 to as low as $2.25 per share on August 23, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Gaotu Techedu Inc. (NYSE: GOTU) common shares between March 22, 2021 and March 29, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 22, 2021 and March 29, 2021, the Defendants Goldman Sachs Group Inc. and Morgan Stanley traded while in possession of material non-public information and that Defendants obtained the material non-public information pursuant to their agreements with Archegos Capital Management's ("Archegos") and as a result of their serving as prime brokers of Archegos, that Defendants knew, recklessly disregarded, or should have known that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep the information confidential, that nevertheless, while in possession of material, non-public adverse information, Defendants collectively sold billions of dollars' worth of Gaotu Techedu Inc. (GOTU) shares.

According to the complaint the plaintiff alleges on behalf of purchasers of Gaotu Techedu Inc. (NYSE: GOTU) common shares between March 5, 2021 and July 23, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 5, 2021 and July 23, 2021, the defendants made false and/or misleading statements and/or failed to disclose, among other things, that: (1) China was barring tutoring for profit in core school subjects and the policy change would restrict foreign investment in a sector that had become essential to success in Chinese school exams; and (2) the impact such regulations would have on Gaotu's operations and profitability and the value of Company securities.

Those who purchased shares of Gaotu Techedu Inc. (NYSE: GOTU) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.