Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit regarding Zhangmen Education, Inc.
NEW YORK, November 22, 2021 / PRNewswire / – Bernstein Liebhard, a nationally recognized investor rights law firm, is reminding investors of the deadline to file a lead plaintiff no later than January 18, 2022 in a securities class action lawsuit filed on behalf of investors who purchased or related to American Depositary Shares (“ADSs”) from Zhangmen Education, Inc. (“Zhangmen” or the “Company”) (NYSE: ZME) have acquired with Zhangmens June 8, 2021 Initial public offering. The lawsuit was filed in The United States District Court for the southern district of new York and alleges violations of Sections 11 and 15 of the Securities Act of 1933.
Bernstein Liebhard LLP. (PRNewsFoto / Bernstein Liebhard LLP) (PRNewsfoto / Bernstein Liebhard LLP)
If you have purchased or acquired Zhangmen ADSs in connection with the IPO and / or would like to discuss your legal rights and options, please visit or contact Zhangmen Education, Inc. Joe Seidman toll-free at (877) 779-1414 or firstname.lastname@example.org.
Up or over June 8, 2021, Zhangmen went public, offering 3,623,000 ADS (excluding the underwriters’ option to purchase an additional 543,450 ADS) at a price of. at $ 11.50 per ADS. Afterwards, Zhangmen sold 4,166,450 ADSs as part of the IPO (including the full exercise of the over-allotment option of the syndicate banks) and thus achieved proceeds of approx. $ 47.9 million.
According to the complaint, defendants made false and / or misleading statements and did not disclose that (a) the authorities of the People’s Republic of China were in the process of implementing major new regulatory reforms for the private education sector China including, but not limited to, bans on: (i) pursuit of profit by private educational companies, (ii) attending core curriculum tutoring on weekends and vacations, and (iii) raising capital from companies such as Zhangmen; and (b) the known risks, events and uncertainties identified in the registration statement are reasonably likely to have a material adverse effect on Zhangmen’s business.
The story goes on
on July 23, 2021 – less than two months after the IPO – China introduced a major overhaul of the education sector, banning companies that teach school curricula, make profits, raise capital or go public. These drastic measures effectively put an end to any potential growth in the for-profit tutoring sector in China. A Reuters report entitled “China prohibits profit-oriented tutoring in core subjects “noted that” the step threatens to decimate “. China $ 120 billion private tutoring industry and sparked a sharp sell-off in stocks of tutoring companies that are traded in Hong Kong and new York. “
on July 26, 2021Zhangmen published a press release with an update on the new PRC guidelines and another update on August 25, 2021 on similar guidelines adopted by the Shanghai Government and the business impact of the company.
Finally on November 19, 2021, Zhangmen announced the voluntary resignation of his auditor Deloitte Touche Tohmatsu Certified Public Accountants LLP.
At the time of filing the complaint, Zhangmen ADSs will be less than. acted $ 2 per ADS, more than 80% below the IPO price.
If you want to appear as the lead plaintiff, you have to go to court no later than January 18, 2022. A lead plaintiff is a representative party who acts on behalf of other members of the group in directing the dispute. Your ability to partake in a recovery does not require you to be the lead plaintiff. If you do nothing, you can remain an absent class member.
If you have purchased or acquired Zhangmen ADSs and / or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/zhangmeneducationinc-zme-shareholder-lawsuit-class-action-fraud-stock- 460 / or contact Joe Seidman toll-free at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has been recovering since 1993 $ 3.5 billion for its customers. In addition to representing individual investors, the firm has been hired by some of the largest public and private pension funds in the country to monitor their assets and litigate on their behalf. As a result of its success in hundreds of legal and class action lawsuits, the firm has been listed on the National Law Journal’s “Plaintiffs’ Hot List” thirteen times and The Legal 500 for ten consecutive years.
ADVERTISING LAWYER. © 2021 Bernstein Liebhard LLP. The firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this report im State of Connecticut is Michael S. Bigin. Past results do not guarantee or predict a similar result with respect to future matters.
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