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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
Court
1:22-cv-07966
Case number
03/05/2021
Class period Start
10/16/2023
Class period End
On 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

Gaotu Techedu Inc DRC

Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China. Its learning services include traditional ...

    Ticker
    GOTU.US
    ISIN
    US36257Y1091
    CIK
    0001768259
    Sector
    Consumer Defensive
    Industry
    Education & Training Services
    Country
    USA
    Address
    Gientech Building, 17 East Zone, Beijing, China, 100193