SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds investors that a purchaser of Sunlands Technology Group (NYSE: STG) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its March 2018 initial public offering ("IPO"). Sunlands provides post-secondary and professional educational services.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/sunlands-technology-group-jul-19/
Sunlands Technology Group Accused of Misleading Investors in IPO
According to the complaint, Sunlands held its initial public offering in March 2018, offering 13,000,000 American Depository Shares ("ADSs") at $11.50 per share. In its Registration Statement, Sunlands touted its rapid growth in net revenue and gross billings, which it attributed to its fast-growing student enrollment as a result of its transition to online courses. However, this statement proved to be materially false and misleading as Sunlands' financial results from its filed May 2019 Form 6-K revealed a 34% decrease in new student enrollment and a 28.6% decrease year-over-year in gross billings. Since Sunlands' IPO, the ADSs have plummeted almost 80% from the IPO price, and currently trade at about $2.40 a share.
Sunlands Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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