SAN DIEGO, June 27, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired 2U, Inc. (NASDAQ: TWOU) securities between February 9, 2022 and February 12, 2024. 2U is an online platform company that operates through two segments – the Degree Program and the Alternative Credentials segment.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that 2U, Inc. (TWOU) Misled Investors Regarding it Business Prospects
According to the complaint, on February 12, 2024, 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 million of revenue from portfolio management activities (i.e., fees negotiated for early partnership contract termination) 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. The Company also announced its full-year revenue of $946 million, significantly missing the Company’s guidance of between $965 and $990 million, and revealed Degree Program Segment revenue, Alternative Credential Segment revenue, and total revenue, all decreased two percent year over year. The Company also issued full year 2024 guidance, estimating revenue would continue to decline $946 million, to between $805 and $815 million. On this news, 2U’s share price fell $0.55, or almost 60%, to close at $0.37 on February 13, 2024.
Plaintiff alleges that during the class period, defendants failed to disclose that: (i) 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; and (4) accordingly, the Company had overstated the stability and/or longevity of its contractual agreements and/or revenue sources.
What Now: You may be eligible to participate in the class action against 2U, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 12, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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| Contact: Aaron Dumas, Jr. Robbins LLP 5060 Shoreham Pl., Ste. 300 San Diego, CA 92122 adumas@robbinsllp.com (800) 350-6003 www.robbinsllp.com | https://www.facebook.com/RobbinsLLP/ https://www.linkedin.com/company/robbins-llp/ |
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