2U (TWOU) Financial Misrepresentation Case

The case has been dismissed, typically without any further action.

D. Maryland

Court

8:24-cv-01723

Case number

02/09/2022

Class period Start

02/12/2024

Class period End

08/12/2024

Lead Plaintiff motion deadline

$TWOU stockholder filed a claim vs. 2U for misleading about its ability to maintain key university partnerships.
On November 10, 2023, $TWOU fell 56.72%, losing $3.5M+ in shareholder value. 
2U investors can join this case to be notified about potential recovery. 
Case Details:

On November 9, 2023, 2U announced it would end its 15-year partnership with USC, with USC paying $40M for the exit. 

The company mentioned "portfolio management activities" offsetting a 21% decline in enrollments due to a new marketing approach since mid-2022. 

They also reported flat Degree Program revenue year-over-year, with total revenue down 1%, and a 3% decrease in Alternative Credential Segment revenue for the quarter.

After this announcement, $TWOU fell 56%, losing $3.5M+ in shareholder value. 

On February 12, 2024, 2U announced that it has significant doubts about its ability to continue operating due to substantial debt and financial mismanagement.

On this news, $TWOU fell 59.33%.

Based on these events, $TWOU stockholder filed a claim against 2U and its leaders, accusing them of the following: 
2U struggled to maintain key university partnerships, leading to program cancellations.
Transitioning to a platform model reduced enrollments and overstated stability.
Considering all the representations, investors have reasons to suspect that 2U hid the loss of key partnerships, leading to reduced enrollments.

Case Type

US Securities Class Action

Case Status

Dismissed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

11/10/2023

Filing date

06/13/2024

Lead Plaintiff Deadline

08/12/2024

Judge

Deborah L. Boardman

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