2U(US:TWOU) GlobeNewswire News Room·2024-08-08 14:45Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against 2U, Inc. due to significant losses experienced by investors, particularly following the company's recent financial disclosures and operational challenges [2][4][7]. Group 1: Legal Investigation and Class Action - 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]. - Investors who suffered losses exceeding $100,000 between February 9, 2022, and February 12, 2024, are encouraged to contact the law firm for discussions regarding their legal rights [1][2]. Group 2: Financial Performance and Operational Issues - 2U announced a significant partnership wind-down with USC, resulting in a $40 million payment and an $80 million recognition in the fourth quarter related to portfolio management activities [5]. - The company reported a 21% decrease in full course equivalent enrollments, attributed to a transition to a new marketing framework [5]. - Fiscal results showed Degree Program revenue flat year over year, total revenue decreased by 1%, and Alternative Credential Segment revenue decreased by 3% [6]. - On February 12, 2024, 2U disclosed substantial doubt about its ability to continue as a going concern, with full-year revenue of $946 million significantly missing guidance of $965 million to $990 million [7]. - The company projected a further decline in revenue for 2024, estimating between $805 million and $815 million [7]. Group 3: Market Reaction - Following the announcement of the partnership wind-down and financial results, 2U's share price fell by $1.35, or 56.72%, closing at $1.03 on November 10, 2023 [6]. - After the February 12, 2024 disclosures, the share price dropped by $0.55, or 59.33%, closing at $0.37 on February 13, 2024 [8].