Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Gaotu Techedu Inc. f/k/a GSX Techedu Inc. (“Gaotu”) (NYSE: GOTU) American Depository Shares (“ADS”) between March 22, 2021 and March 29, 2021, inclusive (the “Class Period”).
According to the complaint, Goldman Sachs and Morgan Stanley sold a large amount of Gaotu shares during the Class Period while in possession of material, non-public information about Archegos and its need to fully liquidate its position in the Company because of margin call pressure. As a result of these sales, Defendants Goldman Sachs and Morgan Stanley avoided billions in losses combined.
Current Status of Case:
On April 26, 2024, Lead Plaintiff appealed the Trial Court’s dismissal of the action to the Second Circuit Court of Appeals. On October 8, 2025, the Appeals Court affirmed the Trial Court’s decision and dismissed the appeal. This action has concluded.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.