The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Zhangmen Education Inc. (NYSE: ZME) who purchased in or traceable to the Company’s initial public offering, conducted on or about June 8, 2021, pursuant to the IPO prospectus. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the Zhangmen lawsuit alleges that (a) People’s Republic of China authorities were in the process of implementing sweeping new regulatory reforms on the private education industry in China including, among others, prohibitions on (i) profit-making by private education companies, (ii) engaging in core-curriculum tutoring on weekends and vacations, and (iii) capital-raising by companies like Zhangmen; (b) the known risks, events and uncertainties noted in (a) above were reasonably likely to have a material adverse effect on the Company’s business; and (c) based on the foregoing, the statements in the Registration Statement concerning the Company’s historical financial performance, market demand, and industry trends were materially incomplete, inaccurate and misleading.
Shareholders have until January 18, 2022 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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