According to the law firm press release, Gridsum is a holding company that designs and develops sophisticated data analysis software for multinational and domestic enterprises and government agencies in China. The Company offers software that allows customers to collect and analyze information that is collected, indexed, and stored in an organized manner.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Gridsum lacked effective internal control over financial reporting; (ii) consequently, Gridsum’s financial statements were inaccurate and misleading, and did not fairly present, in all material respects, the financial condition and results of operations of the Company; and (iii) as a result of the foregoing, Gridsum’s public statements were materially false and misleading at all relevant times.
On September 17, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on December 4. On March 1, 2019, Lead Plaintiff filed a second amended Complaint. Defendants filed a Motion to Dismiss the amended Complaint on May 28. On March 30, 2020, the Court issued an Order granting in part and denying in part the Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Lead Plaintiff filed a third amended Complaint on May 7. On October 14, claims against five of the individual Defendants were voluntarily dismissed.