NEW YORK, April 24, 2018 /PRNewswire/ -- WeissLaw LLP, a national class action and shareholders' rights law firm with offices in New York and Los Angeles, announces an investigation of Gridsum Holding Inc. (NYSE: GSUM) ("GSUM," or the "Company"), its Board of Directors, and certain Company officers for, among other things, possible breaches of fiduciary duty and violations of federal securities laws.
On April 23, 2018, GSUM issued a press release announcing the suspension of its audit report on financial statements, and reporting that the Company's financial statements for the year ended December 31, 2016 "should no longer be relied upon." The Company further explained that PricewaterhouseCoopers Zhong Tian LLP, GSUM's independent registered public accounting firm, identified issues relating to revenue recognition, cash flow, cost and expense reports that have impacted its 2016 financial statements. On that news, the Company's shares nose-dived $3.61, trading at $3.68, nearly half of the previous trading day's closing price.
WeissLaw is investigating whether GSUM's Board (1) failed to meet the recordkeeping requirements and accounting provisions established by federal securities laws; (2) failed to establish and/or maintain comprehensive internal controls to safeguard against financial reporting errors; and consequently, (3) reported improper revenues from services. If you wish to discuss this investigation or have any questions concerning this notice or your rights or interests, please contact Joshua Rubin of WeissLaw LLP at (888)593-4771, or by e-mail at [email protected].
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients. For more information about the firm, please go to: http://www.weisslawllp.com/gridsum-holding-inc/
SOURCE WeissLaw LLP