November 15, 2019 - An amended complaint was filed.
June 27, 2019 - An investor in shares of Sunlands Technology Group (NYSE: STG) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Sunlands Technology Group in connection with certain allegedly false and misleading statements issued in connection with Sunlands’s March 2018 initial public stock offering.
Sunlands Technology Group sold 13million shares at $11.50 in its initial public offering (“IPO”). On May 28, 2019, Sunlands Technology Group announced its financial and operating results for the first quarter of 2019, which included a net loss of $16.8 million, and advised investors that the Company's new student enrollments declined, and gross billings were down 28.6% year-over-year.
According to the complaint the plaintiff alleges on behalf of purchasers of Sunlands Technology Group (NYSE: STG) common shares that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that Sunlands’s student enrollment was declining, that Sunlands’s gross billings were declining, that Sunlands’s marketing tactics were not as robust as described in the Registration Statement, and that as a result, defendants’ statements about Sunlands’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.