Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Gaotu Techedu Inc. (“Gaotu” or the “Company”) (NYSE: GOTU) in the United States District Court for the Eastern District of New York on behalf of all persons and entities who purchased or otherwise acquired Gaotu securities between March 5, 2021 and July 23, 2021, both dates inclusive (the “Class Period”). Investors have until February 28, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The Gaotu class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) 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 (ii) the impact such regulations would have on Gaotu’s operations and profitability and the value of Gaotu securities.
On July 23, 2021, Reuters reported that “China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, news that sent shockwaves through its vast private education sector and share prices plunging.” The article added that “[a]ll institutions offering tutoring on the school curriculum will be registered as nonprofit organisations, and no new licences will be granted, according to the document, which says it was distributed by China’s State Council, or cabinet, to local governments and is dated July 19.” On this news, the price of Gaotu ADSs fell by more than 63%, damaging investors.
If you purchased or otherwise acquired Gaotu shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.