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TWOU.US
id: 1255
2U (TWOU) Financial Misrepresentation Case
D. Maryland
Court8:24-cv-01723
Case number02/09/2022
Class period Start02/12/2024
Class period End08/12/2024
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 Status
Motion to dismiss
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