SAN DIEGO, CA (STL.News) – Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of shareholders of Sunlands Technology Group (“Sunlands”) (NYSE: STG). The class action is on behalf of shareholders who purchased Sunlands common stock pursuant or traceable to the March 2018 initial public stock offering (the “IPO”). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than August 26, 2019.
On or about March 23, 2018, Sunlands sold 13 million shares of stock in its initial public stock offering (the “IPO”), at $11.50 a share raising $149,500,000 in new capital. The lawsuit alleges that, the Registration Statement was false and contained misleading statements and failed to disclose that: (1) Sunlands’ student enrollment was declining; (2) Sunlands’ gross billings were declining; (3) Sunlands’ marketing tactics were not as robust as described in the Registration Statement; and (4) as a result, defendants statements about Sunlands’ business, operations, and prospects were materially false and misleading and lacked a reasonable basis at all relevant times. The lawsuit claims that investors suffered damages as Sunlands securities are trading significantly below the IPO price.