NEW YORK, April 25, 2018 /PRNewswire/ -- Bernstein Liebhard LLP announces that a class action lawsuit has been filed on behalf of purchasers of the securities of Gridsum Holding Inc. ("Gridsum" or the "Company") (NASDAQ: GSUM) between April 27, 2017 and April 20, 2018, both dates inclusive (the "Class Period"). The lawsuit seeks to recover damages for Gridsum investors under the federal securities laws.
To join the Gridsum class action, and/or if you have information relating to this matter, please visit our GRIDSUM SHAREHOLDER PAGE or contact Daniel Sadeh toll free at (877) 779-1414 or [email protected].
According to the lawsuit, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Gridsum lacked effective internal control over financial reporting; (2) consequently, Gridsum's financial statements were inaccurate and misleading, and did not fairly present, in all material respects, the financial condition and results of operations of the Company; and (3) as a result of the foregoing, Gridsum's public statements were materially false and misleading at all relevant times.
On April 23, 2018, Gridsum issued a press release stating that its auditor's "audit report for the Company's financial statements for the year ended December 31, 2016 should no longer be relied upon" by investors. During its audit of the Company's financial results for the year ended December 31, 2017, the Company's auditor identified issues relating "to certain revenue recognition, cash flow, cost and expense items, and their underlying documentation which PwC had previously raised with the Company." Gridsum stated that "[t]he Company's Audit Committee is fully investigating these issues" and "the Company's 20-F filing will be delayed until such audit is completed."
On this news, Gridsum's stock fell $1.17, or 16.04%, to close at $6.12 on April 23, 2018, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than June 25, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.