Practice Area: Securities Fraud & Investor Protection
Case Status: Pending
Court: United States District Court for the Southern District of New York
On April 12, 2022, the United States District Court for the Southern District of New York appointed Berger Montague as Co-Lead Counsel in a securities class action against Goldman Sachs Group, Inc. and Morgan Stanley involving the alleged insider trading of the securities of Gaotu Techedu, Inc.
This action will be coordinated with six other lawsuits against Goldman Sachs and Morgan Stanley brought on behalf of investors in six other companies in whose securities the defendants allegedly conducted insider trades. These lawsuits allege that Goldman Sachs and Morgan Stanley unlawfully sold shares in seven companies – Gaotu, Vipshop Holdings Ltd., Tencent Music Entertainment Group, ViacomCBS, Inc., iQIYI, Inc., Baidu, Inc., and Discovery, Inc. – on nonpublic information regarding the meltdown of Archegos Capital Management. In addition, the district court approved Berger Montague’s seat on the Plaintiffs’ Executive Committee responsible for the coordination of all seven actions.
The initial complaint filed last year alleged that Goldman Sachs Group Inc. and Morgan Stanley sold a large number of Gaotu Techedu shares while in possession of material non-public information. The defendants are alleged to have known that Archegos Capital Management would need to fully liquidate its position in Gaotu Techedu based on margin call pressures. According to the lawsuit, the defendants avoided billions in losses by selling the Company’s shares while in possession of this information, and when the market learned the truth about Gaotu Techedu, investors suffered significant losses. The litigation is ongoing.
If you are an investor and have questions about a potential securities fraud lawsuit, please contact Berger Montague.
About Berger Montague
Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.