NEW YORK -- (Business Wire)
Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against 2U, Inc. (“2U”) (NASDAQ: TWOU) regarding alleged violations of federal securities laws. If you purchased 2U stock between February 26, 2018 and July 30, 2019, you are encouraged to contact Scott+Scott attorney Joe Pettigrew at (844) 818-6982 for additional information.
The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) 2U faced increasing competition in online education and particularly regarding graduate programs; (2) 2U faced certain program-specific issues that negatively impacted its performance; (3) as a result, 2U’s business model was not sustainable; (4) 2U would slow its program launches; and (5) as a result, Defendants’ statements about 2U’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 7, 2019, 2U lowered its revenue guidance for fiscal 2019 to a range of $534 to $537 million, from prior guidance range of $546.6 to $550.8 million, due to declining average enrollments in some of its largest graduate programs.
On this news, 2U’s stock fell from $59.93 on May 7, 2019 to $44.77 on May 8, 2019, or about 25%.
On July 30, 2019, 2U announced a larger than expected quarterly loss and told investors that it would be "tempering short-term growth projections” in an attempt to get on a “defined path to profitability.”
On this news, 2U’s shares plummeted from $36.50 on July 30, 2019 to $12.80 on July 31, 2019, or about 64%.
What You Can Do
If you purchased 2U stock between February 26, 2018 and July 30, 2019, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982 or firstname.lastname@example.org. The lead plaintiff deadline is October 7, 2019.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California and Ohio.
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