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Gridsum Holding Inc (NASDAQ: GSUM) Investor Securities Class Action Lawsuit 04/25/2018

  • If you purchased shares of Gridsum Holding Inc (NASDAQ: GSUM), you might have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Gridsum Holding Inc.
Security
NASDAQ: GSUM

Case Name
Gridsum Holding SHareholder Class Action Lawsuit 04/25/2018
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Southern District of New York

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Summary

May 7, 2020 - A third amended complaint was filed.

March 30, 2020 - The court granted in part and denied in part the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

May 28, 2019 - A motion to dismiss the amended complaint was filed.

March 1, 2019 - A second amended complaint was filed.

December 4, 2018 - An amended complaint was filed.

April 25, 2018 - An investor in shares of Gridsum Holding Inc (NASDAQ: GSUM) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Gridsum Holding Inc in connection with certain allegedly false and misleading statements made between April 27, 2017 and April 20, 2018.

Gridsum Holding Inc provides data analysis software for enterprises and government agencies in China. Gridsum Holding Inc reported that its annual Total Revenue rose from 234.83 million CNY in 2015 to 400.25 million CNY in 2016 and that its Net Loss increased from 48.81 million CNY in 2015 to 67.69 million CNY in 2016.

On April 23, 2018, Gridsum Holding Inc announced that its “audit report for the Company’s financial statements for the year ended December 31, 2016 should no longer be relied upon.” According to the announcement, Gridsum Holding Inc’s auditor identified certain issues in conducting its audit of Gridsum Holding Inc’s financial results for the year ended December 31, 2017. Those issues related to “certain revenue recognition, cash flow, cost, expense items, and their underlying documentation which [the auditor] had previously raised” with Gridsum Holding Inc.

Shares of Gridsum Holding Inc (NASDAQ: GSUM) declined on April 23, 2018, to as low as $3.68 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Gridsum Holding Inc (NASDAQ: GSUM) common shares between April 27, 2017, and April 20, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between April 27, 2017 and April 20, 2018, the defendants made false and/or misleading statements and/or failed to disclose that Gridsum Holding Inc lacked effective internal control over financial reporting, that consequently, Gridsum Holding Inc’s financial statements were inaccurate and misleading, and did not fairly present, in all material respects, the financial condition and results of operations of the Company, and that as a result of the foregoing, Gridsum Holding Inc’s public statements were materially false and misleading at all relevant times.