According to the lawsuit, the IPO’s Registration Statement made false and/or misleading statements and/or failed to disclose that:
- Chinese authorities were in the process of implementing sweeping new regulatory reforms on the private education industry in China including, among others, prohibitions on:
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- profit-making by private education companies,
- engaging in core-curriculum tutoring on weekends and vacations, and
- capital-raising by companies like Zhangmen Education;
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- the known risks, events, and uncertainties noted in the Registration Statement were reasonably likely to have a material adverse effect on Zhangmen Education’s business; and
- based on the foregoing, the statements in the Registration Statement concerning Zhangmen Education’s historical financial performance, market demand, and industry trends were materially incomplete, inaccurate, and misleading.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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