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2U, Inc. Class Action Lawsuit - TWOU

20 days left to seek lead plaintiff status

Case Summary

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The 2U class action lawsuit seeks to represent purchasers or acquirers of 2U, Inc. (NASDAQ: TWOU) securities between February 9, 2022 and February 12, 2024, inclusive (the “Class Period”).  Captioned Beaumont v. 2U, Inc., No. 24-cv-01723 (D. Md.), the 2U class action lawsuit charges 2U and certain of 2U’s top current and former executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the 2U lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.  Lead plaintiff motions for the 2U class action lawsuit must be filed with the court no later than August 12, 2024.

CASE ALLEGATIONS: 2U is an online education platform company.

The 2U class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) 2U was unable to sustain relationships with key universities and organizations; (ii) as a result, certain degree programs and partnerships failed to materialize or were cancelled; (iii) 2U’s transition to a platform company would lead to a decrease in full course equivalent enrollments; and (iv) accordingly, 2U had overstated the stability and/or longevity of its contractual agreements and/or revenue sources.

The 2U class action lawsuit further alleges that on November 9, 2023, 2U announced that: (i) 2U and the University of Southern California (“USC”) would wind down their 15-year collaboration in 2U’s major programs, and that USC would pay approximately $40 million in connection with the exit; (ii) 2U would recognize a total of $80 million in the fourth quarter related to partners seeking a negotiated exit from certain degree programs; (iii) these portfolio management activities would offset a 21% decrease in full course equivalent enrollment, which was primarily driven by “the impact of [2U’s] transition to a new marketing framework in mid-2022”; and (iv) fiscal quarterly results showed Degree Program revenue was flat year over year, total revenue had decreased 1%, and the Alternative Credential Segment revenue decreased 3%.  On this news, the price of 2U stock fell nearly 57%, according to the complaint.

Then, on February 12, 2024, the 2U class action lawsuit further alleges that 2U disclosed that due to its debt, “there is substantial doubt about its ability to continue as a going concern.”  On this news, the price of 2U stock fell more than 59%, according to the complaint.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired 2U securities during the Class Period to seek appointment as lead plaintiff in the 2U class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the 2U class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the 2U class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the 2U class action lawsuit.

ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases.  Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors.  We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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