PHILADELPHIA, July 17, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC announces that a class action lawsuit was filed in the U.S. District Court for the District of Maryland on behalf of those who acquired 2U, Inc. (“2U” or the “Company”) (NASDAQ: TWOU) securities.
If you suffered losses as a result of your investment in 2U (NASDAQ: TWOU) and would like to learn about a potential recovery, CLICK HERE.
The lawsuit has been filed against 2U on behalf of purchasers of 2U securities between February 9, 2022 and February 12, 2024, inclusive (the “Class Period”).
The deadline for investors who purchased or acquired 2U securities during the Class Period to seek to be appointed as a lead plaintiff representative of the class, is August 12, 2024.
2U is an online education platform company based in Lanham, Maryland.
According to the lawsuit, on November 9, 2023, after the market closed, the Company announced that 2U and the University of Southern California (“USC”) would wind down their 15-year collaboration in the Company’s major programs, and that USC would pay approximately $40 million in connection with this exit. The Company also announced it would recognize a total of $80 million in the fourth quarter related to partners seeking a negotiated exit from certain degree programs, which the Company euphemistically referred to as “portfolio management activities.”
Following this news, 2U’s share price fell $1.35, or 56.72%, to close at $1.03 per share on November 10, 2023.
Then, on February 12, 2024, after the market closed, 2U disclosed that, due to the Company’s debt, “there is substantial doubt about its ability to continue as a going concern.” The Company further disclosed it recognized $88.0 million of revenue from portfolio management activities in the year and it would assume another $10 million from such activities in the first quarter of 2024 and at least $15 million in full-year 2024.
Following this news, 2U’s share price fell $0.55, or 59.33%, to close at $0.37 per share on February 13, 2024, on unusually heavy trading volume.
For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net or (215) 875-3048, or CLICK HERE.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
(215) 875-3048
phamner@bm.net
