2U, Inc. (NASDAQ: TWOU) Investor Securities Class Action Lawsuit 08/07/2019

If you purchased a significant amount of shares of 2U, Inc. (NASDAQ: TWOU) between February 25, 2019 and July 30, 2019, and / or if you purchased any NASDAQ: TWOU shares prior to February 2019 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: October 7, 2019. NASDAQ: TWOU investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
2U
Case Name: 
2U Shareholder Class Action Lawsuit 08/07/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: TWOU
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/07/2019
Class Period Begin: 
02/25/2019
Class Period End: 
07/30/2019
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
10/07/2019
Summary: 

An investor in shares of 2U, Inc. (NASDAQ: TWOU) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by 2U, Inc. in connection with certain allegedly false and misleading statements made between February 25, 2019 and July 30, 2019.

Lanham, MD based 2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. 2U, Inc. reported that its annual Total Revenue rose from $286.75 million in 2017 to $411.76 million in 2018.

On May 7, 2019, 2U, Inc. lowered its revenue guidance for fiscal 2019 to a range of $534 to $537 million, from prior guidance range of $546.6 to $550.8 million, due to declining average enrollments in some of its largest graduate programs.
Then on July 30, 2019, after the market closed, 2U, Inc. reported a larger-than-expected loss for second quarter 2019. 2U, Inc. also revised its guidance for fiscal 2019, expecting a net loss between $157.5 and $151.5 million, compared to prior net loss guidance between $79.0 and $77.2 million, because it would “moderate [its] grad program launch cadence.”

Shares of 2U, Inc. (NASDAQ: TWOU) declined from $98.30 per share in May 2018 to as low as $11.37 per share on July 31, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of 2U, Inc. (NASDAQ: TWOU) common shares between February 25, 2019 and July 30, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 25, 2019 and July 30, 2019, the Defendants failed to disclose to investors that the Company faced increasing competition in online education and particularly regarding graduate programs, that the Company faced certain program-specific issues that negatively impacted its performance, that, as a result, the Company’s business model was not sustainable, that the Company would slow its program launches, and 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.