Gaotu Techedu Inc. f/k/a GSX Techedu Inc. Securities Fraud Class Action

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 1, 2024, the Court granted Defendants' Motion to Dismiss. On April 26, 2024, the Lead Plaintiff appealed the dismissal to the United States Court of Appeals for the Second Circuit. On October 8, 2025, the Second Circuit 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 [email protected]. 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.