NEW YORK, Aug. 16, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against 2U, Inc. (“2U” or “the Company”) (NASDAQ: TWOU) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired 2U securities between February 25, 2019 and July 30, 2019, both dates inclusive. Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/twou.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
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, the Company’s business model was not sustainable; (4) 2U would slow its program launches; and (5) consequently, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On July 30, 2019, after-market hours, 2U announced a large loss for the second quarter 2019. The Company’s Chief Executive Officer, Christopher "Chip" Paucek said that the Company was working toward a "defined path to profitability by tempering short-term growth projections and leveraging our scale to drive greater operational efficiencies across the business." After this announcement, analysts demoted 2U and some mentioned that its model was "breaking." Following this news, 2U stock dropped $23.70 per share or almost 65% to close at $12.80.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/twou or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in 2U you have until October 7, 2019 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
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