GOTU - Gaotu Techedu Inc. Investor Alert

GOTU – Gaotu Techedu Inc. Investor Alert

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Purchasers Of Gaotu Techedu Inc. Securities Between March 22, 2021 And March 29, 2021 Are Encouraged To Contact Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is investigating whether Goldman Sachs Group Inc. (“Goldman Sachs”) and Morgan Stanley (“Morgan Stanley”) violated federal securities laws.

On October 20, 2021, a class action lawsuit was filed against Goldman Sachs and Morgan Stanley in United States District Court, Southern District of New York, based, according to the complaint, on the alleged, unlawful use of material non-public information by Defendants Goldman Sachs and Morgan Stanley.

According to the class action complaint, “Defendants Goldman Sachs and Morgan Stanley avoided billions in losses by selling shares of Gaotu Techedu Inc., formerly known as GSX Techedu Inc. (‘Gaotu’ or the ‘Company’) [NYSE: GOTU] . . . to the Plaintiff and other unsuspecting and unwitting shareholders, after [confidentially] learning that Archegos Capital Management (‘Archegos’), a family office with $10 billion under management, failed (or was likely to fail) to meet a margin call, requiring it to fully liquidate its position in [Gaotu].” [Emphasis in original and supplied.]

The class action complaint alleges that the Goldman Sachs and Morgan Stanley “. . . Defendants sold a large chunk of Gaotu shares during the week of March 22, 2021 while in possession of material, non-public information. According to subsequent media reports, the Defendants unloaded large block trades consisting of shares of Archegos’ doomed bets, including billions worth of Gaotu securities, late Thursday, March 25, 2021, before the Archegos story reached the public, sending Gaotu’s stock into a complete tailspin . . ..”

GAOTU TECHEDU INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, THE COMPANY’S SHARES BETWEEN MARCH 22, 2021 AND MARCH 29, 2021 (THE “CLASS PERIOD”) WHO WISH TO DISCUSS KEHOE LAW FIRM’S SECURITIES CLASS ACTION INVESTIGATION OR HAVE QUESTIONS ABOUT POTENTIAL LEGAL CLAIMS ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT EITHER JOHN KEHOE, ESQ., (215) 792-6676, EXT. 801, [email protected], OR MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected].
Kehoe Law Firm, P.C.