RADNOR, Pa., May 06, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Gridsum Holdings Inc. (NASDAQ:GSUM) (“Gridsum” or the “Company”) on behalf of purchasers of the Company’s shares between April 27, 2017 and April 20, 2018, inclusive (the “Class Period”).
Gridsum investors are encouraged to visit www.kaskelalaw.com/case/gridsum to receive additional information about this action and submit their information online. Investors may also contact attorney D. Seamus Kaskela at (888) 715 – 1740, or via email at skaskela@kaskelalaw.com, to discuss their legal rights and options with respect to this action.
On April 23, 2018, the Company issued a press release entitled “Gridsum Reports Suspension of Audit Report on Financial Statements” and disclosed that the “audit report for the Company’s financial statements for the year ended December 31, 2016 should no longer be relied upon.” The press release further disclosed that Gridsum’s auditor had identified certain “issues” while conducting its audit of the Company’s financial results for the year ended December 31, 2017, including issues relating to “certain revenue recognition, cash flow, cost, expense items, and their underlying documentation which [the auditor] had previously raised” with Gridsum.
Following this news, Gridsum’s shares declined $1.17, or over 16%, to close at on April 23, 2018 at $6.12 per share.
The shareholder class action complaint alleges that Gridsum and certain of its senior executive officers made false and misleading statements and/or failed to disclose to investors that: (i) Gridsum lacked effective internal control over financial reporting; and (ii) Gridsum’s financial statements were inaccurate and misleading, and did not fairly present, in all material respects, the financial condition and results of operations of the Company. The complaint further alleges that, as a result of the foregoing, Gridsum investors purchased their securities at artificially inflated prices during the Class Period and sustained significant investment losses when the truth was revealed.
Investors who purchased Gridsum shares during the Class Period may, no later than June 25, 2018, seek to be appointed as a lead plaintiff representative of the class through Kaskela Law or other counsel, or may choose to do nothing and remain an absent class member. In order to be appointed as a lead plaintiff a class member meet certain legal requirements.
Kaskela Law LLC exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(888) 715 – 1740
skaskela@kaskelalaw.com
www.kaskelalaw.com