2U(US:TWOU) GlobeNewswire News Room·2024-08-02 01:50Core Viewpoint - A class action has been filed against 2U, Inc. (NASDAQ: TWOU) by shareholders who purchased securities between February 9, 2022, and February 12, 2024, alleging that the company misled investors about its business prospects and financial stability [1][2]. Financial Performance - On February 12, 2024, 2U disclosed substantial doubt about its ability to continue as a going concern due to its debt situation [2]. - The company recognized $88 million in revenue from portfolio management activities in the previous year and projected an additional $10 million in the first quarter of 2024, with at least $15 million expected for the full year 2024 [2]. - 2U's full-year revenue was reported at $946 million, significantly below the guidance of $965 to $990 million, with a year-over-year decline of 2% in both Degree Program and Alternative Credential Segment revenues [2]. - The company issued a revenue guidance for 2024, estimating a further decline to between $805 million and $815 million [2]. Allegations - The plaintiff alleges that during the class period, 2U failed to disclose critical issues, including the inability to maintain relationships with key universities, leading to canceled degree programs and partnerships [3]. - The transition to a platform company was said to have resulted in a decrease in full course equivalent enrollments, and the company allegedly overstated the stability of its contractual agreements and revenue sources [3]. Legal Proceedings - Shareholders interested in serving as lead plaintiffs must file motions with the court by August 12, 2024 [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4].