PHILADELPHIA, June 27, 2019 (GLOBE NEWSWIRE) -- Kehoe Law Firm, P.C. announces that a class action lawsuit was filed on behalf of purchasers of the American Depositary Shares (“ADS”) of Sunlands Technology Group (“Sunlands” or the “Company”) (NYSE: STG) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Sunland’s March 2018 initial public offering (“IPO”). The class action lawsuit seeks to recover compensable damages for shareholders of Sunlands under the federal securities laws.
If you purchased securities of Sunlands and suffered damages, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, jkehoe@kehoelawfirm.com, or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, myarnoff@kehoelawfirm.com, info@kehoelawfirm.com, to learn more about the class action investigation or lawsuit. STG investors have until August 26, 2019 to move the Court to serve as lead plaintiff.
According to the class action complaint:
Sunlands provides online education services in the People’s Republic of China . . .. Sunlands offers various degree and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination . . . for learners pursuing associate diplomas or bachelor’s degrees, as well as for the entrance examinations of master of business administration programs.
In March 2018, Defendants held the IPO, issuing approximately 13 million American Deposit[a]ry Share[s] . . . to the investing public at $11.50 per ADS, pursuant to the Registration Statement.
By the commencement of this action, Sunlands ADSs traded around $2.28 per ADS, over 80% decline from the IPO price. As a result, investors were damaged.
The class action complaint alleges that
Defendants made false and/or misleading statements and/or failed to disclose that: (1) Sunlands’s student enrollment was declining; (2) Sunlands’s gross billings were declining; (3) Sunlands’s marketing tactics were not as robust as described in the Registration Statement; and (4) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Additionally, the complaint states that “[t]he price of Sunlands’s ADSs has plummeted since the IPO. Currently, Sunlands’s ADSs trades around $2.28 per ADS, a decline of over 80% from the IPO price.” [Emphasis added.]
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
