SAN DIEGO, Jan. 20, 2023 (GLOBE NEWSWIRE) —

The class: Robbins LLP Reminds investors that a shareholder has filed a class action lawsuit on behalf of all investors Gaotu Techedu Inc. GOT YOU American Depository Shares (“ADSs”) between March 5, 2021 and July 23, 2021 for violating the Securities Exchange Act of 1934. Gaotu purports to be a technology-focused education company providing online tutoring for K-12 tutoring offers in the People’s Republic of China.

What now: Shareholders in a similar situation may be eligible to participate in the class action lawsuit against Gaotu. Shareholders who wish to be lead plaintiffs in the class action must file their filings by February 28, 2023. A Lead Plaintiff is a representative party acting on behalf of other Class Plaintiffs in the conduct of the litigation. You do not have to be present at the case to be eligible for a recovery. Click for more information here.

All representations are on a contingency fee basis. Shareholders pay no fees or costs.

What is it about in this case: Gaotu Techedu Inc. (GOTU) has failed to disclose the impact of China’s ban on for-profit education on its business prospects

According to the complaint, the defendants failed to do the following during class time, among other things: (1) China bans for-profit tutoring in core school subjects and the policy change would restrict foreign investment in a sector that has become essential to succeeding in Chinese school exams; and (2) the impact such regulations would have on Gaotu’s operations and profitability and the value of the Company’s securities.

on July 23, 2021, Reuters reported that China bans for-profit tutoring in core school subjects, sparking a sharp sell-off in tutoring company stocks. Continue, “[a]All institutions that provide tutoring on the school’s curriculum will be registered as non-profit organizations and no new licenses will be issued [sic] As a result of this news, the price of Gaotu’s ADSs fell by 63.3% to close at $3.52 per ADS on…