Faruqi and Faruqui, LLP Logo
Share this page

Gridsum Holding, Inc. (GSUM)

(NASDAQ: GSUM)

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Gridsum Holding, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Gridsum Holding, Inc.  (“Gridsum” or the “Company”) (NASDAQ:GSUM) of the June 25, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Gridsum stock or options between April 27, 2017 and April 20, 2018 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Gridsum securities between April 27, 2017 and April 20, 2018 (the “Class Period”).  The case, Xu v. Gridsum Holding Inc. et al, No. 1:18-cv-03655 was filed on April 25, 2018.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the company 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.

Specifically, on April 23, 2018, Gridsum issued a press release entitled “Gridsum Reports
Suspension of Audit Report on Financial Statements,” announcing that its “audit report for the
Company’s financial statements for the year ended December 31, 2016 should no longer be
relied upon.” According to the press release, Gridsum’s auditor identified certain issues in
conducting its audit of Gridsum’s financial results for the year ended December 31, 2017. Those issues related to “certain revenue recognition, cash flow, cost, expense items, and their underlying documentation which [the auditor] had previously raised” with Gridsum.
After the announcement, Gridsum’s share price fell from $7.29 per share on April 20, 2018, to a closing price of $6.12 on April 23, 2018—a $1.17 or a 16.04% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

 

Contact Us

To contact Faruqi & Faruqi, LLP please call (877) 247-4292 or (212) 983-9330, or please
fill out the form below and a Firm representative will contact you.

  • Case:
    Gridsum Holding, Inc. (GSUM)
  •    

* The submission of this form does not create an attorney-client relationship.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 04/27/2018

Send Information

If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.