SHAREHOLDER ALERT: Pomerantz Law Firm Announces Filing of Class Action Lawsuit Against 2U, Inc.

NEW YORK, July 2, 2024 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against 2U, Inc. (“2U” or the “Company”) (NASDAQ: TWOU). Investors are advised to contact Danielle Peyton has (protected email) or 646-581-9980 (or 888.4-POMLAW), toll-free, ext. 7980. Persons inquiring by e-mail are encouraged to include their mailing address, telephone number and number of shares purchased.

The class action concerns whether 2U and certain of its officers and/or directors engaged in securities trading. fraud or other illegal business practices.

You have until August 12, 2024to ask the court to appoint you as lead plaintiff for the class if you are a shareholder who purchased or otherwise acquired 2U securities during the class period. A copy of the complaint may be obtained fromat www.pomerantzlaw.com.

(Click here for information on how to join the class action)

On November 9, 2023After the market closed, 2U announced that the Company and the University of Southern California (“University of Southern California“) would end their 15-year collaboration in the Company’s core programs, and that University of Southern California would pay about $40 million as part of this release. 2U also announced that it would recognize a total of $80 million In the fourth quarter, the Company engaged partners seeking to negotiate an exit from certain degree programs, which the Company euphemistically referred to as “portfolio management activities.” The Company disclosed that these portfolio management activities would offset a 21% decline in full-course equivalent enrollments, which was primarily due to “the impact of (its) transition to a new marketing framework in mid-2022.” The Company also disclosed quarterly results for the year, showing that degree program revenue was flat year-over-year, total revenue decreased 1%, and revenue from the alternative degrees segment decreased 3%.

Following this news, 2U’s share price fell $40.50 per share, or 56.72%, to close at $30.90 per action on November 102023.

Then, on February 12, 2024After the market closed, 2U disclosed that due to the company’s debt, “there is substantial doubt as to its ability to continue as a going concern.” The company also disclosed that it acknowledged $88.0 million income from portfolio management activities (i.e. fees negotiated for early termination of the partnership agreement) during the year and this would assume another $10 million such activities in the first quarter of 2024 and at least $15 million for the full year 2024. 2U also announced its annual turnover of $946 millionsignificantly missing the Company’s guidance regarding $965 million has $990 millionand revealed that revenue from the degree programs segment, revenue from the alternative degrees segment and total revenue all declined 2% year over year. The company also issued guidance for the full year 2024, estimating that revenue would continue to decline compared to $946 millionhas $805 million has $815 million.

Following this news, 2U’s share price fell $16.34 per share, or 59.33%, to close at $27.55 per action on February 13, 2024.

Pomerantz LLP, with offices in new York, Chicago, Los Angeles, London, ParisAnd Tel Avivis recognized as a leading law firm in the areas of corporate, securities and antitrust class action litigation. Founded by the late Abraham L. PomerantzKnown as the dean of the class action bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities class actions. fraudbreaches of fiduciary duty and professional malpractice. The firm has recovered billions of dollars in damages on behalf of class members. See www.pomlaw.com.

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CONTACT:
Danielle Peyton
Pomerantz LLP
(protected email)
646-581-9980 ext. 7980

SOURCE Pomerantz LLP