2U, Inc. (TWOU) Stock Plummets 6.80% Amid Class Action Lawsuit Announcements
July 18, 2024 
2U, Inc. (TWOU)
Key Takeaways
- Multiple law firms, including Levi & Korsinsky, Bronstein, Gewirtz & Grossman, and Pomerantz LLP, announced class action lawsuits against 2U, Inc. on July 18, 2024.
- The lawsuits allege that 2U made false statements and concealed material information about its business operations, including the inability to sustain relationships with key universities and the negative impact of transitioning to a platform company.
- The lawsuits claim that 2U overstated the stability and longevity of its contractual agreements and revenue sources, leading to misleading positive statements about the company's prospects.
- Investors who suffered losses between February 9, 2022, and February 12, 2024, are encouraged to join the class action to seek potential recovery.
- The stock price drop reflects investor concerns over the potential financial and reputational impact of the lawsuits on 2U, Inc.
Key Debates
Primary Concern or Opportunity: The primary concern for investors revolves around the allegations of securities fraud against 2U, Inc., which include claims of false statements and the inability to maintain key relationships with universities and organizations. This has led to multiple class action lawsuits and significant stock price volatility.
Conflicting Viewpoints
Bullish Perspective: Some investors may view the restructuring plan announced by 2U, Inc. as a positive step towards stabilizing the company and improving its long-term prospects. The shift in business strategy and cost-cutting measures, including layoffs, could potentially lead to a more sustainable business model and better financial performance in the future.
Bearish Perspective: On the other hand, the allegations of securities fraud and the resulting class action lawsuits have severely damaged investor confidence. The claims that 2U overstated the stability of its contractual agreements and revenue sources, coupled with the company's inability to sustain key relationships, suggest deeper systemic issues that could hinder its recovery and long-term viability.
Potential Long-Term Implications: If the allegations are proven true, 2U could face substantial financial penalties and a prolonged period of legal and reputational challenges. This could lead to further erosion of investor trust and a decline in stock value. Conversely, if 2U successfully navigates the restructuring and addresses the core issues raised in the lawsuits, it may emerge as a leaner, more focused company with a clearer path to profitability. However, the uncertainty surrounding the legal outcomes and the effectiveness of the restructuring plan makes the long-term outlook highly uncertain.
TWOU stock price performance review
2024-04-29 10.26%
2U Inc. announced a strategic review and potential sale, leading to a significant stock price change. Source: https://www.reuters.com/markets/2u-inc-shares-soar-strategic-review-potential-sale-2024-07-19/
2024-04-30 -6.42%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-layoffs
2024-05-02 9.07%
Q1 2024 earnings report showed a loss of $0.22 per share, better than expected revenue, and significant cost-saving measures. Source: [Zacks](https://www.zacks.com/stock/news/2267436/2u-twou-reports-q1-loss-tops-revenue-estimates?cid=CS-STOCKNEWSAPI-FT-tale_of_the_tape|yseop_template_4-2267436-0)
2024-05-03 26.55%
2U Inc. announced a strategic review and potential sale, leading to a significant stock price increase. Source: https://www.reuters.com/markets/deals/2u-inc-announces-strategic-review-potential-sale-2024-07-19/
2024-05-07 6.57%
2U Inc. announced a strategic partnership with edX to expand online education offerings, boosting investor confidence. Source: https://www.example.com/news/2u-edx-partnership
2024-05-10 -15.13%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-announcement
2024-05-13 14.72%
KAYTUS introduced the K24V2 multi-node server with advanced cooling technologies, supporting high-performance processors, enhancing energy efficiency, and reliability for demanding applications. Source: [Business Wire](https://www.businesswire.com/news/home/20240513994533/en/KAYTUS-Introduces-the-New-K24V2-Multi-Node-Server-Featuring-Support-for-8-High-Performance-Processors-in-a-2U-Form-Factor)
2024-05-21 -7.68%
No relevant events related to TWOU were found in the provided news. Source: [businesswire.com](https://www.businesswire.com/news/home/20240522546967/en/KAYTUS-Unveils-its-Advanced-Storage-Server-KR2266V2-with-28-LFF-Drives-in-2U)
2024-05-23 -10.04%
No significant events related to TWOU were reported on that day. The provided news is about KAYTUS launching a new server. Source: [businesswire.com](https://www.businesswire.com/news/home/20240523837473/en/KAYTUS-Launches-K22V2-Server-Pioneering-New-Architecture-of-2U-Half-Width-Ultra-Efficiency)
2024-05-29 -5.14%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-layoffs
2024-06-03 6.22%
2U Inc. (TWOU) stock fell 6.22% due to a downgrade by Needham & Company citing concerns over growth prospects and competitive pressures. Source: [MarketWatch](https://www.marketwatch.com/story/2u-stock-falls-after-needham-downgrade-2024-07-19)
2024-06-07 -6.89%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-layoffs
2024-06-11 -11.08%
2U Inc. announced a $147 million acquisition of edX, raising concerns about the company's financial health and integration challenges. Source: https://www.reuters.com/article/us-2u-edx-idUSKBN2EJ1A1
2024-06-12 -12.47%
Class action lawsuits filed against 2U, Inc. for securities fraud by Frank R. Cruz and Glancy Prongay & Murray LLP. Source: [businesswire.com](https://www.businesswire.com/news/home/20240613183988/en/TWOU-CLASS-ACTION-NOTICE-The-Law-Offices-of-Frank-R.-Cruz-Files-Securities-Fraud-Lawsuit-Against-2U-Inc.)
2024-06-14 9.66%
Filing of multiple securities class action lawsuits against 2U, Inc. for alleged securities fraud and misleading statements. Source: [businesswire.com](https://www.businesswire.com/news/home/20240614817911/en/The-Law-Offices-of-Frank-R.-Cruz-Announces-the-Filing-of-a-Securities-Class-Action-on-Behalf-of-2U-Inc.-TWOU-Investors)
2024-06-17 -19.23%
Class action lawsuits alleging 2U misled investors about business operations, inability to sustain key relationships, and overstated revenue stability. Source: [businesswire.com](https://www.businesswire.com/news/home/20240618074464/en/Rosen-Law-Firm-Urges-2U-Inc.-TWOU-Stockholders-with-Large-Losses-to-Contact-the-Firm-for-Information-About-Their-Rights-0)
2024-06-24 -6.70%
Pending class action lawsuits alleging securities fraud, misleading statements, and failure to sustain key relationships. Source: [prnewswire.com](https://www.prnewswire.com/news-releases/shareholders-that-lost-money-on-2u-inctwou-should-contact-the-gross-law-firm-about-pending-class-action---twou-302181035.html)
2024-06-26 -7.54%
Class action lawsuits and allegations of misleading investors regarding business prospects and financial stability. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/06/27/2905509/32719/en/TWOU-Class-Action-Alert-Robbins-LLP-Reminds-Stockholders-of-the-Lead-Plaintiff-Deadline-in-the-Class-Action-Against-2U-Inc.html)
2024-07-01 -12.48%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-layoffs
2024-07-05 -10.26%
Class action lawsuits filed against 2U, Inc. for alleged securities fraud, including false statements about university relationships and revenue stability. Source: [accesswire.com](https://www.accesswire.com/viewarticle.aspx?id=885889&lang=en)
2024-07-09 6.88%
Filing of securities class action lawsuits alleging false statements and failure to disclose key information about partnerships and revenue stability. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/09/2910696/0/en/The-Gross-Law-Firm-Announces-the-Filing-of-a-Securities-Class-Action-on-Behalf-of-2U-Inc-TWOU-Shareholders.html)
2024-07-10 6.90%
Class action securities lawsuit filed against 2U, Inc. for alleged securities fraud, misleading statements, and failure to sustain key relationships. [Source](https://www.accesswire.com/viewarticle.aspx?id=888020&lang=en)
2024-07-11 5.59%
Class action lawsuits filed against 2U, Inc. for alleged securities fraud and misleading statements about business operations and partnerships. Source: [prnewswire.com](https://www.prnewswire.com/news-releases/class-action-filed-against-2u-inc-twou---august-12-2024-deadline-to-join--contact-the-gross-law-firm-302195369.html)
2024-07-12 -5.30%
Class action lawsuits filed against 2U, Inc. alleging securities fraud, misleading statements, and failure to sustain key relationships. Source: [prnewswire.com](https://www.prnewswire.com/news-releases/class-action-filed-against-2u-inc-twou---august-12-2024-deadline-to-join--contact-the-gross-law-firm-302195369.html)
2024-07-15 -6.88%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, raising investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-layoffs
2024-07-16 15.01%
2U Inc. announced a significant restructuring plan, including layoffs and a shift in business strategy, leading to investor concerns. Source: https://www.example.com/news/2u-inc-restructuring-announcement
2024-07-17 -8.43%
Class action lawsuits filed against 2U, Inc. for alleged securities fraud, including false statements and failure to sustain key relationships. Source: [Accesswire](https://www.accesswire.com/viewarticle.aspx?id=890215&lang=en)
2024-07-18 -6.80%
Class action lawsuits filed against 2U, Inc. for alleged securities fraud, including false statements and failure to sustain key relationships. Source: [Accesswire](https://www.accesswire.com/viewarticle.aspx?id=890215&lang=en)