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GSUM.US
id: 894

Gridsum (GSUM) IPO Disclosures $4.5M Settlement

$4,500,000
Cash Settlement
S.D. New York
Court
1:18-cv-03655
Case number
09/22/2016
Class period Start
01/07/2019
Class period End
05/15/2024
Claim deadline

Gridsum agreed to settle a $4.5 million with investors to end a five-year-old lawsuit alleging Gridsum made misleading statements about its accounting and taxes related to a 2016 IPO.

Case Details:

Gridsum supposedly misled about its lacking of effective internal control over financial reporting, which resulted in inaccurate financial statements.

On April 23, 2018, Gridsum issued a press release, acknowledging the suspension of its audit report for the year ended December 31, 2016.

Moreover, audit problems for the financial results in 2017 caused a 16% $GSUM drop.

Gridsum has now decided to resolve all the case related allegations and pay a $4.5M settlement.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Filing date
04/25/2018
Plaintiffs
Peifa Xu
Attorneys
Bragar Eagel & Squire PC
Defendants
Thomas Adam Melcher, Guosheng Qi, Ravi Sarathy, Micahel Peng Zhang
Judge
Hon. Edgardo Ramos
Settlement agreement date
2023-12-05
Court hearing date
03/04/2024
Exclusion deadline
03/04/2024
Objection deadline
03/04/2024
Trades matching type
FIFO
Disbursement date
12/02/2024

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who purchased or otherwise acquired Gridusm ADSs and publicly traded call options, and also the sales (writings) of publicly traded Gridsum put options during the period between September 22, 2016 and January 7, 2019.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.