NEW YORK, July 08, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Sunlands Technology Group (“Sunlands” or the “Company”) (NYSE:STG) of the August 26, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Sunlands stock or options pursuant and or traceable to the Company’s March 23, 2018 Initial Public Offering (“IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/STG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Sunlands American Depository Shares (“ADS”) pursuant and or traceable to the Company’s March 23, 2018 IPO. The case, Horowitz v. Sunlands Technology Group et al., No. 19-cv-03744 was filed on June 27, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Sunlands’ student enrollment was declining; (2) Sunlands’ gross billings were declining; (3) Sunlands’ marketing tactics were not as robust as described in the Registration Statement; and (4) as a result, defendants’ statements about Sunlands’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 20, 2018, Sunlands filed its final amendment to the Registration Statement, which registered over 13 million Sunlands ADS’s for public sale, or 520,000 Class A Ordinary Shares as each ADS represented one Class A ordinary share. The SEC declared the Registration Statement effective on March 22, 2018. On March 23, 2018, Defendants priced the IPO at $11.50 per ADS and filed the final Prospectus for the IPO on Form 424B4, which forms part of the Registration Statement. Through the IPO, Defendants issued and sold approximately 13 million ADSs, pursuant to the Registration Statement.
As of the filing of the aforementioned complaint, Sunlands’ ADS price traded around $2.28 per share, representing a decline of over 80% from the Company’s IPO price.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Sunlands’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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