A securities class action has been filed has been filed in the USDC, C.D.CA. against 17 Education & Technology Group Inc. (YQ) on behalf of purchasers of the securities of 17 Education & Technology Group Inc. (NASDAQ: YQ) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with 17EdTech’s December 2020 initial public offering (the “IPO”).
According to the lawsuit, the Registration Statement featured false and/or misleading statements and/or failed to disclose that:
- Defendant 17EdTech’s K-12 Academic AST Services would end less than a year after the IPO;
- as part of its ongoing regulatory efforts, Chinese authorities would imminently curtail and/or end 17EdTech’s core business; and
- as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.