SAN DIEGO, July 23, 2022 /PRNewswire/ — The law firm of Robbins Geller Rudmann & Dowd LLP announces that purchasers or acquirers of publicly traded securities of 17 Education & Technology Group Inc. (NASDAQ: YQ) pursuant to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in the 17 Education & Technology registration statement framework December 4, 2020 initial public offering (the “IPO”) have until September 19, 2022 to seek appointment as lead applicant in the 17 Education and technology class action. The 17 Education and technology class action lawsuit – subtitled Zhang v. 17 Education & Technology Group Inc.#22-cv-04937 (CD Cal.) – accuses 17 Education & Technology and some of its key officers, directors and underwriters of violating the Securities Act of 1933.
If you have suffered significant losses and wish to act as lead plaintiff, please provide your information here:
You can also contact a lawyer Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or emailing [email protected].
CASE ALLEGATIONS: 17 Education & Technology offered tutoring services related to academic subjects to students from kindergarten to the last year of high school (“K-12 Academic AST Services”) in the People’s Republic of China (“PRC”). On December 4, 202017 Education & Technology held its IPO, issuing approximately 27,400,000 American Depositary Shares (“ADS”) to the investing public at $10.50 by ADS, pursuant to the registration statement.
Since at least February 2019. In January 2021, the month after the IPO, Chinese authorities again made it clear publicly within the PRC that they would reform the tutoring industry in which 17 Education & Technology operated. In doing so, for example, the Central Commission for Discipline Inspection, the Chinese Communist Party’s highest internal enforcement division, and the PRC’s National Supervisory Commission published an article warning against abuse reforms. by private education companies. In light of the reforms proposed, discussed and adopted from China’s Education Modernization Plan 2018-2022, several other Chinese education technology companies, including VIPKid, Huohua Siwei, Zuoyebang and Yuanfudao, have reportedly dropped out or postponed public offering plans.
The 17 Education and Technology Group the class action alleges that the IPO’s registration statement was false and/or misleading and/or failed to disclose that: (i) 17 Education & Technology’s K-12 academic AST services would terminate less than one year after the IPO; and (ii) as part of its ongoing regulatory efforts, Chinese authorities would impending reduction and/or termination of 17 Education & Technology’s core business.
On July 23, 2021, just months after the IPO, Chinese authorities officially revealed to the public the maintenance of regulations prohibiting after-school tutoring companies that teach the school curriculum from making a profit, raising capital or going public. These measures officially ended any potential growth of the for-profit tutoring sector in the PRC.
From July 13, 2022the price of 17 ADS Education & Technology fell about 85% from the $10.50 IPO price.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who has purchased or acquired 17 publicly traded securities in education and technology pursuant to the registration statement issued in connection with the IPO on the stock exchange to seek nomination as lead applicant. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the 17 Education and technology class action. The main plaintiff can select a law firm of his choice to plead 17 Education and technology class action. An investor’s ability to participate in any potential future upturn does not depend on its status as the lead claimant of the 17 Education and technology class action.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked #1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other company from the plaintiffs. With 200 attorneys in 9 offices, Robbins Geller is one of the largest plaintiffs firms in the world, and the firm’s attorneys have secured many of the largest securities class action recoveries in history, including the most largest ever securities class action recovery – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit the following page for more information:
Past results do not guarantee future results.
Services can be performed by attorneys in any of our offices.
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, California 92101
Jennifer N. Caringal800-449-4900
SOURCE Robbins Geller Rudman & Dowd LLP