The information contained on this website is only a summary of the information presented in more detail in the Notice of Pendency of Class Action, Proposed Settlement, and Motion for Attorneys' Fees and Expenses (the “Notice”). A copy of the Notice can be found on the Important Documents page at the top of this website. Because this website is just a summary, you should review the Notice for additional details.
Summary of the Action and Settlement
This website relates to a pending securities class action lawsuit (the “Action”) against GSX Techedu, Inc. (n/k/a Gaotu Techedu Inc.)(“GSX”), Larry Xiangdong Chen, and Nan Shen (collectively, “Defendants”). The Action involves allegations that the Defendants violated the Securities Exchange Act of 1934 by making misrepresentations and/or omissions of material fact in public statements to the investing public regarding GSX’s enrollments and revenues, resulting in the price of GSX Securities being artificially inflated and dropping in response to subsequent disclosures.
Defendants have denied and continue to deny each, any, and all allegations of wrongdoing, fault, liability, or damage, and the Court did not finally decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a Settlement which, if approved by the Court, will provide for the payment of $9,500,000 in cash (the “Settlement Amount”), plus interest as it accrues, minus attorneys’ fees, costs, compensatory awards to Plaintiffs and administrative expenses, and Taxes on interest, to investors who purchased GSX Securities during the Class Period, and who submit eligible Claim Forms. The Court will hold a hearing on June 4, 2026 to decide whether to approve the Settlement.
The Settlement Class consists of:
All persons and entities who purchased or otherwise acquired the publicly-traded American Depositary Shares (“ADSs”), evidenced by American Depositary Receipts, of GSX from June 6, 2019 through October 20, 2020, inclusive (including those who purchased ADSs in or traceable to GSX’s initial public offering on or about June 6, 2019, or GSX’s secondary public offering on or about November 20, 2019), and were damaged thereby.
If one of your mutual funds owns GSX Securities, that alone does not make you a Settlement Class Member. Also, if you sold GSX Securities during the Class Period, that alone does not make you a Settlement Class Member. You are a Settlement Class Member only if you directly purchased or otherwise acquired GSX Securities during the Class Period.
Excluded from the Settlement Class are (i) Defendants; (ii) members of the Immediate Families of the Individual Defendants and the directors and officers of GSX; (iii) any person who was an officer or director of GSX during the Class Period; (iv) any firm, trust, corporation, or other entity in which any Defendant has or had a controlling interest; (v) the Company’s employee retirement and benefit plan(s), if any, and their participants or beneficiaries; (vi) the legal representatives, affiliates, subsidiaries, parents, heirs, heirs apparent, beneficiaries, successors-in-interest, or assigns of any such excluded person or entity in (i)-(v), in their respective capacity as such; (vii) Judge Michael E. Farbiarz, Judge Esther Salas, Magistrate Judge Jose R. Almonte, and their current or former chambers staff, and any of their family members; and (viii) any persons or entities who or which exclude themselves by submitting a timely and valid request for exclusion that is accepted by the Court.
Please read the Notice to fully understand your rights and options. A copy of the Notice can be found on the Important Documents page of this website and a copy of the Claim Form can be found on the File a Claim page.
| YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT: |
| SUBMIT A CLAIM FORM |
The only way to get a payment from the Settlement. Proof of Claim forms must be postmarked or submitted online on or before May 30, 2026. See Question 10 in the Notice for instructions on how to submit a Claim Form. |
| EXCLUDE YOURSELF |
Get no payment. This is the only option that allows you to ever be part of any other lawsuit against the Defendants or any other Released Defendant Parties about the legal claims that were or could have been asserted in this case. Requests for exclusion must be received on or before May 28, 2026. |
| OBJECT |
Submit an Objection to the Court about why you do not like the Settlement or any aspect of it. You will still be a member of the Settlement Class. Objections must be received by the Claims Administrator on or before May 28, 2026. |
| PARTICIPATE IN THE HEARING |
Ask to speak in Court about the fairness of the Settlement or any aspect of it. Requests to speak must be received by the Court and counsel on or before May 28, 2026. The Settlement Hearing is set for June 4, 2026. |
| DO NOTHING |
Get no payment AND give up your rights to bring your own lawsuit relating to the claims asserted in this Action. |
How do I obtain more information?
Detailed information about the Settlement is contained in the Notice, a copy of which can be found on the Important Documents page of this website. Additional information can also be obtained by contacting the Claims Administrator by calling toll-free 855-779-3369, emailing info@GSXSecuritiesSettlement.com or mailing a letter to:
GSX Securities Settlement
c/o JND Legal Administration
P.O. Box 91131
Seattle, WA 98111
Inquiries should NOT be directed to the Court or the Clerk of the Court.
© JND Legal Administration. All rights reserved.
