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GSUM.US

id: 894

Gridsum (GSUM) IPO Disclosures $4.5M Settlement

The settlement funds have been distributed to claimants.

$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

Disbursed

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

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