2U(US:TWOU) GlobeNewswire News Room·2024-06-20 20:19Company Overview - 2U, Inc. is an American company that collaborates with non-profit colleges and universities to develop online degree and non-degree programs, including courses offered through its edX platform [3]. Securities Fraud Claims - A class action lawsuit has been initiated against 2U, Inc. for alleged securities fraud, with claims that the company made false and misleading statements regarding its business operations and prospects during the Class Period from February 9, 2022, to February 12, 2024 [4][8]. - The complaint alleges that 2U, Inc. failed to disclose its inability to maintain relationships with key universities, leading to the cancellation of certain degree programs and a decline in enrollments [4]. Financial Performance - On February 12, 2024, 2U disclosed substantial doubt about its ability to continue as a going concern due to its debt, reporting full-year revenue of $946 million, which missed its previous guidance of $965 to $990 million [5]. - The company reported a year-over-year revenue decline of 2% across its Degree Program Segment and Alternative Credential Segment, with total revenue also decreasing by 2% [5]. - For the full year 2024, 2U estimated revenue would further decline to between $805 million and $815 million [5]. Stock Price Movement - Following the February 12, 2024 announcement, 2U's share price plummeted by $0.55, or 59.33%, closing at $0.37 per share on February 13, 2024, amid unusually heavy trading volume [5]. - On November 9, 2023, 2U announced the end of its 15-year collaboration with USC, recognizing $80 million in the fourth quarter related to partners exiting certain degree programs, which contributed to a 21% decrease in full course equivalent enrollment [10]. - After this announcement, 2U's stock price fell by $1.35, or 56.72%, closing at $1.03 per share on November 10, 2023, also on unusually heavy trading volume [10].