NEW YORK -- (Business Wire)
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired 2U, Inc. (“2U” or the “Company”) (NASDAQ: TWOU) securities during the period from February 25, 2019 to July 30, 2019 (the “Class Period”). Investors have until October 7, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that 2U failed to disclose to investors that: (i) the Company faced increasing competition in online education and particularly regarding graduate programs; (ii) the Company faced certain program-specific issues that negatively impacted its performance; (iii) that, as a result, the Company’s business model was not sustainable; and (iv) that the Company would slow its program launches.
On May 7, 2019, the Company 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 price fell $15.16 per share, or 25.3%, to close at $44.77 on May 8, 2019.
Then on July 30, 2019, the Company reported a larger-than-expected loss for second quarter 2019. The Company also revised its guidance for fiscal 2019, expecting a net loss between $157.5 and $151.5 million, compared to prior net loss guidance between $79.0 and $77.2 million, because it would “moderate [its] grad program launch cadence.” On this news, 2U’s stock price fell $23.70 per share, or 64.9%, to close at $12.80 on July 31, 2019.
If you acquired 2U securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600
Source: Kirby McInerney LLP
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