Click here to join the case
LOS ANGELES, Oct. 25, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Gaotu Techedu, Inc. ("Gaotu" or "the Company") (NYSE : GOTU) investors that acquired securities between March 22, 2021 through March 29, 2021.
Investors are encouraged to contact attorney Lesley F. Portnoy, to determine eligibility to participate in this action, by phone 310-692-8883 or email, or click here to join the case.
MoffettNathanson published a report on March 25, 2021, questioning ViacomCBS’s value, downgrading the stock to a “sell,” setting a price target of only $55 per share, in comparison to the company’s $85 offer. On Friday, March 26, 2021, ViacomCBS’s stock fell dramatically following that report, and closed at $48 per share. It was required to maintain a certain amount of collateral to avoid triggering a margin call, since Archegos had traded ViacomCBS on margin. It was reported on March 27, 2021 that Archegos failed to cover and, as a result, on Friday, March 26, 2021 more than $20 billion of its leveraged equity positions had to be liquidated.
Then, CNBC.com reported on Friday, March 26, 2021 that “Morgan Stanley sold about $5 billion in shares from Archegos’ doomed bets on U.S. media and Chinese tech names to a small group of hedge funds late Thursday, March 25,” prior to the MoffettNathanson report reaching the public. It is also reported in this article that Goldman Sachs quickly disposed of its shares related to Archegos. These sales by Defendants were made with confidential, insider information, including that Gaotu was among the few securities Archegos had to liquidate, and allowed Defendants to unlawfully avoid billions of dollars in losses combined.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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