NEWTOWN, Pa., June 20, 2024 (GLOBE NEWSWIRE) -- Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of investors of 2U, Inc. (“2U”) common stock (NASDAQ: TWOU) between February 9, 2022, and February 12, 2024, inclusive (the “Class Period”).
Investors who purchased 2U stock may move the U.S. District Court for the District of Maryland to appoint them as lead plaintiff, no later than August 12, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
What is a Lead Plaintiff?
The lead plaintiff is a court-appointed representative of a class of purchasers of securities in a class action under the federal securities fraud laws. The lead plaintiff selects the attorneys who will represent the class in the lawsuit. Among other things, the lead plaintiff reviews the complaint, stays informed about the progress of the case, and if necessary, provides testimony at trial.
Background on 2U, Inc.
2U, Inc. is an American company that works with non-profit colleges and universities to create online degree and non-degree programs, including online courses offered through its edX platform.
The Securities Fraud Claims
Throughout the Class Period, the Complaint alleges that Defendants made false and misleading statements about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) 2U, Inc. was unable to sustain relationships with key universities and organizations; (ii) as a result, certain degree programs and partnerships failed to materialize or were canceled; (iii) the transition to a platform company would lead to a decrease in full course equivalent enrollments; and (iv) 2U, Inc. overstated the stability and longevity of its contractual agreements and/or revenue sources.
On November 9, 2023, 2U, Inc. announced the end of its 15-year collaboration with USC. 2U, Inc. also disclosed recognizing $80 million in the fourth quarter related to partners seeking to leave certain degree programs. These activities offset a 21% decrease in full course equivalent enrollment, primarily due to transitioning to a new marketing framework in mid-2022. The quarterly fiscal results showed degree program revenue flat year-over-year, total revenue down by 1%, and 2U’s Alternative Credential Segment revenue down by 3%. On this news, 2U’s stock price fell $1.35 per share, or 56.72%, to close at $1.03 per share on November 10, 2023, on unusually heavy trading volume.
On February 12, 2024, after the market closed, 2U disclosed that due to its debt, there is substantial doubt about its ability to continue as a going concern. 2U, Inc. also announced full-year revenue of $946 million, and missing its previous guidance of $965 to $990 million. It revealed that Degree Program Segment revenue, Alternative Credential Segment Revenue, and total revenue all decreased 2% year-over-year. 2U issued full-year 2024 guidance, estimating revenue would continue to decline from $946 million to $805 to $815 million. On this news, 2U’s share price fell $0.55 or 59.33%, to close at $0.37 per share on February 13, 2024, on unusually heavy trading volume.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
