A securities class action has been filed in the USDC — MD. against 2U, Inc. (TWOU) (“2U” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired 2U securities between February 9, 2022 and February 12, 2024, both dates inclusive (the “Class Period”).
2U is an online education platform company which operates through two segments, the Degree Program and the Alternative Credentials segment. The Degree Program delivers content, in partnership with established colleges and universities to students seeking online undergraduate or graduate degree. The Alternative Credential segment offers online open courses, boot camps, and micro-credential programs, also in partnership with colleges and universities, for shorter duration and lower-priced non-degree offerings.
The claim arises on February 12, 2024, after the market closed, when 2U disclosed that due to the Company’s debt, “there is substantial doubt about its ability to continue as a going concern.”
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) the Company was unable to sustain relationships with key universities and organizations;
(2) as a result, certain degree programs and partnerships failed to materialize or were cancelled;
(3) the Company’s transition to a platform company would lead to a decrease in full course equivalent enrollments;
(4) accordingly, the Company had overstated the stability and/or longevity of its contractual agreements and/or revenue sources; and
(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
On this news, 2U’s share price fell $0.55 or 59.33%, to close at $0.37 on February 13, 2024, on unusually heavy trading volume.
If you purchased 2U securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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