BOSTON, May 18, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, reminds investors that a securities fraud class action has been filed against GSX Techedu Inc. (NYSE: GSX) and certain of its officers. Investors who have lost money are encouraged to contact the firm for a free case evaluation.
GSX is a Chinese technology-driven education company, providing online K-12 after school tutoring services in China. The lawsuit alleges that on February 25, 2020, Grizzly Research LLC published a report highlighting multiple alleged issues with GSX’s business and financial operations, including that GSX “has been drastically overstating its profitability in its US public filings, especially for 2018,” and that “many of GSX’s reported students do not actually exists.” After this report was released, the price of GSX’s ADS fell $1.33 per share.
Then on April 14, 2020, analyst Citron Research published a scathing report, calling GSX “The Most Blatant Chinese Stock Fraud since 2011.” It reported that “[u]p to 70% of revenues are fabricated and the Chinese media agrees,” and that GSX “is overstating revenue by up to 70% and should immediately halt trading and launch an internal investigation.” On this news, GSX’s ADS fell to a close of just $31.20 per share.
If you purchased or acquired shares of GSX and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockesq.com, or at https://shareholder.law/gsx. The lead plaintiff deadline is June 16, 2020.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockesq.com
SOURCE: Block & Leviton LLP
www.blockesq.com
