The company has denied the allegations and said it had, “engaged third-party professional advisers to conduct an internal independent review” before the SEC’s review. China-based online education company GSX Techedu has confirmed it is the subject of an investigation by the Securities and Exchange Commission following allegations it was inflating sales. said it would not contest Nasdaq’s decision to delist. 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Your email address will not be published. Required fields are marked *, Copyright © 2020 CFO. GSX Techedu Inc is primarely in the business of services-educational services. The company’s shares dropped 17% Wednesday morning on the news. journalists in 50+ countries covering politics, business, innovation, trends and more. Last month shares of the streaming service iQiyi fell after it disclosed it too was the subject of an SEC investigation. In a filing, the company said it was asked last summer by the SEC’s enforcement unit to share “certain financial and operating records” going back to 2017. That probe was prompted by a report from Wolfpack Research that accused iQiyi of inflating revenue and user numbers. Now: $63.90 $65.00. Notice from the SEC of registration effectiveness: Nov 20, 2019: Open Notice from the SEC … 50 Broad Street, New York, N.Y. 10004. In May, Carson Block of Muddy Waters Research said he had shorted the company’s stock after concluding it was, “a near-total fraud.”. The company has been a target for short-sellers in recent months. Compare. 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SEC Probes China’s GSX Techedu After Short Sellers’ Pleas Short sellers accuse New York-listed tutoring company of inflating its sales. $17.15. It also said enrollment in its K-12 online course increased more than 300% year over year. GSX also allegedly used shell companies to disguise expenses. MA: $83.54 $114.99. In June, Luckin said it would not contest Nasdaq’s decision to delist the company after a financial misconduct scandal that led to the firing of its chief executive officer and chief operating officer and sent its share price plummeting. “If the audits are done properly it will go to zero and delist.”. 50-Day Range. For financial … In Citron's letter to SEC commissioners, for example, it says GSX is engaged in "an active and ongoing fraud" that is … GSX Techedu, a US-listed Chinese education company, is facing an investigation by the US securities regulator following allegations from short-sellers that it faked sales. All Rights Reserved. Can food delivery services save UK restaurants? Share . 52-Week Range. GSX Techedu Inc is primarely in the business of services-educational services. Re: GSX Techedu’s operational & financial frauds; market manipulation To Mr. Jay Clayton, This letter is in regards to the unmistakable fraud and market manipulator, GSX Techedu (ticker: GSX), and the lack of action to date by the SEC. They were down more than 5% Thursday. “That was a very important part of the short thesis,” Left said. GSX Techedu SEC Filings & 10K Form Lowest-Rated Stocks $63.90-1.76 (-2.68 %) (As of 11/23/2020 12:00 AM ET) Add. $60.00. CFO Publishing LLC, a division of The Argyle Group. A number of Chinese companies have been caught in accounting scandals, including Luckin Coffee and iQiyi. Today's Range. For financial … $65.51. The SEC maintains a publicly accessible listing of all public companies that have had their trading Citron Research short-seller Andrew Left said the company’s suspicious enrollment numbers stood out in the highly competitive online education industry. Gain a global perspective on the US and go beyond with curated news and analysis from 600 Your email address will not be published. GSX Techedu, U.S. Securities and Exchange Commission Regaining Momentum in 2020 and Beyond Despite economic turmoil created by the COVID-19 pandemic, recent surveys show a clear trend of CFOs taking a long view when developing their international operations strategies and cross-border M&A plans. GSX reported revenue of about $233 million for the second quarter, a more than four-fold increase year over year. 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