According to the Complaint, 2U, Inc. is an education technology company that works with universities to provide
online graduate programs and certificates for working adults.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company faced increasing competition in online education and particularly regarding graduate programs; (2) that the Company faced certain program-specific issues that negatively impacted its performance; (3) that, as a result, the Company’s business model was not sustainable; (4) that the Company would slow its program launches; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 26, 2019, the Court issued an Order transferring this case to the District of Maryland. The case docket in the District of Maryland is 19-CV-03455.
On June 1, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 19-CV-03455.
Lead Plaintiff filed a consolidated Complaint on July 30, 2020. Defendants filed a Motion to Dismiss the consolidated Complaint on October 27. On August 5, 2021, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On April 29, 2022, the parties notified the Court that they had reached an agreement to settle. The parties entered into a Stipulation and Agreement of Settlement on May 31. On June 23, the Court granted preliminary approval of the Settlement. On December 9, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.
The Court issued an Order authorizing distribution of the Settlement funds on July 13, 2023.
