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The Law Offices of Frank R. Cruz Announces Investigation of Gaotu Techedu Inc. f/k/a GSX Techedu Inc. (GOTU) on Behalf of Investors

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Press release content from Business Wire. The AP news staff was not involved in its creation.
January 3, 2023 GMT

LOS ANGELES--(BUSINESS WIRE)--Jan 3, 2023--

The Law Offices of Frank R. Cruz announces an investigation of Gaotu Techedu Inc. f/k/a GSX Techedu Inc. (“Gaotu” or the “Company”) (NYSE: GOTU ) on behalf of investors concerning the Company’s possible violations of federal securities laws.

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On July 23, 2021, Reuters reported that China was barring for-profit tutoring programs, citing a government document that was widely circulated. The regulatory move “threatens to decimate the $120 billion private tutoring industry.”

On this news, Gaotu’s ADS price fell 63.3%, to close at $3.25 per ADS on July 23, 2021, thereby injuring investors.

Then, on November 6, 2021, the Financial Times published an article alleging, among other things, that Gaotu leaders had been aware that Beijing was considering stricter regulations on the tutoring industry. The article also reported that a shell company holding shares for Gaotu’s executives sold $119 million worth of shares days after the Chinese president remarked that home-schooling was a “stubborn disease” that was putting too much pressure on Chinese children and their parents.

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If you purchased Gaotu securities, have information or 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20230103005733/en/

CONTACT: The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

fcruz@frankcruzlaw.com

www.frankcruzlaw.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL

SOURCE: The Law Offices of Frank R. Cruz

Copyright Business Wire 2023.

PUB: 01/03/2023 02:05 PM/DISC: 01/03/2023 02:06 PM

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