This lawsuit is for anyone who acquired securities in Zhangmen Education, Inc. (NYSE: ZME) from June 8, 2021 through November 19, 2021.
The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, in the Prospectus to the Company's IPO, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors that the Chinese Government was considering an extensive overhaul of its education sector which could prohibit companies that teach school curriculum from making profits, raising capital or going public.
On July 23, 2021 China revealed an extensive overhaul of its education sector, prohibiting companies that teach the school curriculum from making profits, raising capital or going public. This effectively ended China’s $120 billion private tutoring industry. Then, on July 26, 2021, Zhangmen issued a release stating that these new guidelines were likely “to have material impacts on our existing business operations, financial condition and corporate structure.” Finally, on November 19, 2021, Zhangmen announced that its independent auditor had resigned. As a result of the forgoing news, the Company's share price has continued to drop from the time of the IPO through the date of this lawsuit.
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Zhangmen Education, Inc. (NYSE: ZME) from June 8, 2021 through November 19, 2021 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.
Join the Class Action
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I, the Plaintiff, certify that:
1. I have reviewed the Complaint and authorized its filing.
2. Plaintiff did not purchase the security that is the subject of this
action, at the direction of plaintiff's counsel or in order to
participate in any private action arising under this title.
3. I am willing to serve as a representative party on behalf of a class
and will testify at deposition and trial, if necessary.
4. My transactions in the securities, which are the subject of this
action, during the Class Period set forth in the Complaint are as
5. I have not served as a representative party on behalf of a class
under the federal security laws during the last three years, except
if detailed below.
6. I will not accept any payment for serving as a representative party,
except to receive my pro rata share of any recovery or as ordered
or approved by the court including the award to a representative
plaintiff of reasonable costs and expenses (including lost wages)
directly relating to the representation of the class.
agreement and retain the Law Offices of Howard G. Smith and its associates to proceed on Plaintiff's behalf, on a contingent fee basis. If I am executing this agreement on behalf of an institution, I further certify that I am authorized to execute this agreement on behalf of the institution.