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GOTU.US
id: 640
Gaotu Techedu Inc (GSX) Manipulation Case
The court has denied the request to dismiss the case, allowing it to proceed.
E.D. New York
Court1:22-cv-07966
Case number03/05/2021
Class period Start10/16/2023
Class period EndOn May 18, 2020, GSX Techedu was accused by independent short-seller Muddy Waters of manipulating its financial accounts. The MW report stated that at least ~70% of GSX's users were fake.
On this news, the $GSX price dropped, and many market participants reasonably made the decision to open short positions at fundamentally inflated price levels.
Market participants suspect that following the dramatic increase in short interest GSX Techedu allegedly conspired with some big market players, including the notorious Archegos, to manipulate prices causing a short squeeze.
The short squeeze caused $GSX share price to jump 200% by Autumn 2020, despite continued accusations of accounting shenanigans and related lawsuits against the Company.
Taking all facts into account, Short Seller Market Participants have reasons to suspect $GSX, its officers, and certain hedge funds of conspiracy for market manipulation.
Case Status
Motion to dismiss denied
Alleged Offence
Price manipulation,
Insider Trading
Suspected Party
Directors,
Management,
Shareholder,
Influencer,
Investment Bank,
Service Provider,
Research Entity,
Hedge Fund
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Short
Shock Event Date
05/18/2020
Filing date
12/30/2022
Judge
Pamela K. Chen