Case Summary

2U

NASDAQ: TWOU

Case Details

  • Beaumont v. 2U, Inc. et al.
  • Class Period:February 9, 2022 - February 12, 2024
  • Date Filed:June 13, 2024
  • Jurisdiction:U.S. District Court, District of Maryland
  • Docket Number: 8:24-cv-01723
  • Lead Plaintiff Deadline: August 12, 2024
Days Left to
Seek Plaintiff
25

Overview

A class action lawsuit has been filed against 2U, Inc. (“2U” or the “Company”) (NASDAQ: TWOU) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The 2U class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired 2U securities between February 9, 2022, and February 12, 2024, both dates inclusive (the “Class Period”).  Investors have until August 12, 2024, to seek appointment as lead plaintiff of the 2U class action lawsuit.

2U is an online education platform company which operates through two segments, the Degree Program, and the Alternative Credentials segment.  The Degree Program delivers content in partnership with established colleges and universities to students seeking online undergraduate or graduate degree.  The Alternative Credential segment offers online open courses, boot camps, and micro-credential programs, also in partnership with colleges and universities, for shorter duration and lower-priced non-degree offerings.  The Company’s longest running flagship programs were run through the University of Southern California (“USC”).  Programs with USC represented 15% and 21% of the Company’s consolidated revenue, respectively, for the years ended December 31, 2019, and 2018.  For the majority of the Company’s offerings, the Company utilizes “edX,” an online learning platform which acts a as a consumer marketplace for the Company’s catalog of courses as well as an integrated hub for students to access coursework and learning modules.  2U acquired edX in 2021, paying $800 million and taking out an estimated $475 million in short-term financing to do so.

The 2U class action lawsuit alleges that Defendants failed to disclose to investors that: (1) the Company was unable to sustain relationships with key universities and organizations; (2) as a result, certain degree programs and partnerships failed to materialize or were cancelled; (3) the Company’s transition to a platform company would lead to a decrease in full course equivalent enrollments; (4) accordingly, the Company had overstated the stability and/or longevity of its contractual agreements and/or revenue sources; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased or otherwise acquired 2U securities between February 9, 2022, and February 12, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the 2U lawsuit is August 12, 2024.

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