2U(US:TWOU) Prnewswire·2024-07-25 13:50Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against 2U, Inc. due to significant losses suffered by investors, particularly following the company's recent financial disclosures and operational challenges [2][4][6]. Company Overview - 2U, Inc. is a publicly traded company on NASDAQ under the ticker TWOU, which has faced substantial operational difficulties, including the inability to maintain key partnerships and a decline in enrollment [3][4]. Financial Performance - The company reported a total revenue of $946 million for the full year, which was significantly below its guidance of $965 million to $990 million, indicating a year-over-year decline in key revenue segments [6]. - Degree Program revenue remained flat year-over-year, while Alternative Credential Segment revenue decreased by 3% [4][6]. Recent Developments - On November 9, 2023, 2U announced the winding down of its collaboration with USC, resulting in a $40 million payment from USC and an $80 million recognition in the fourth quarter related to portfolio management activities [4]. - Following these announcements, 2U's share price fell by 56.72% to close at $1.03 on November 10, 2023, on unusually heavy trading volume [5]. Legal Actions - A federal securities class action has been filed against 2U, with a deadline of August 12, 2024, for investors to seek the role of lead plaintiff [2][7]. - The complaint alleges that the company made materially false and misleading statements regarding its business operations and failed to disclose adverse facts that affected its performance [3][4]. Future Outlook - The company has provided guidance indicating that revenue is expected to decline further in 2024, estimating a range of $805 million to $815 million [6].