GSX Techedu $9.5 Million Securities Settlement, Did You Buy GSX Stock Between 2019 and 2020? File a Claim Before May 30, 2026

GSX Techedu Inc., along with two former executives, agreed to pay $9.5 million to settle a federal securities class action alleging they made false and misleading statements about the company’s student enrollment numbers and revenues, artificially inflating the stock price. If you bought GSX American Depositary Shares (ADSs) between June 6, 2019 and October 20, 2020, you may be owed money. The deadline to file a claim is May 30, 2026.

Field	Detail
Settlement Amount	$9,500,000
Claim Deadline	May 30, 2026
Who Qualifies	Purchasers of GSX ADSs from June 6, 2019 – October 20, 2020
Payout Per Person	~$0.12 per share (pro-rata, subject to claims volume)
Proof Required	Yes (brokerage statements / trade confirmations)
Settlement Status	Proposed — Final hearing June 4, 2026
Administrator	JND Legal Administration
Official Website	gsxsecuritiessettlement.com

Where things stand right now:

• The settlement is currently proposed and open for claims while the court review continues — the court has not yet granted final approval.
• The final approval hearing is scheduled for June 4, 2026, after which JND Legal Administration will process all valid claims and distribute payments.
• The opt-out deadline is May 28, 2026 — investors who want to preserve their right to sue GSX Techedu independently must exclude themselves before that date.

What GSX Was Accused of Telling Investors

GSX Techedu launched its IPO in 2019, positioning itself as a leader in China’s K-12 online education space, touting rapid growth and triple-digit revenue increases and rising enrollment figures. The lawsuit claims those numbers were largely fiction.

Short-seller reports from Grizzly Research, Citron Research, and Muddy Waters accused the company of inflating revenue and enrollment data. Citron claimed GSX overstated its 2019 revenue by 70%, while Muddy Waters reported that over 73% of its users were bots or operated by third parties.

After these disclosures came out, GSX’s stock fell by over 80%. In September 2020, the company confirmed it was under SEC investigation. On October 20, 2020, reports confirmed that GSX’s revenue figures had been significantly overstated, sending the stock down nearly 30% in a single day.

Do You Qualify to File a Claim?

The settlement class covers all persons and entities that purchased or otherwise acquired the publicly traded American Depositary Shares of GSX Techedu, Inc. (now known as Gaotu Techedu Inc.) from June 6, 2019 through October 20, 2020, inclusive, and were damaged as a result.

You may qualify if:

• You purchased GSX ADSs on the open market between June 6, 2019 and October 20, 2020
• You purchased ADSs traceable to the company’s initial public offering on or about June 6, 2019, or the secondary public offering on or about November 20, 2019
• You suffered a financial loss as a result of the alleged misrepresentations
• You are the actual beneficial owner of the securities — joint owners must each sign the claim form, and agents, executors, or trustees may submit claims on behalf of others with proof of authority

Excluded from the settlement class are the defendants themselves, their immediate family members, any officer or director of GSX during the class period, and any entity in which a defendant had a controlling interest.

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How Much Could You Receive?

The estimated payout is approximately $0.12 per share, though the final amount each investor receives depends on how many valid claims are filed. The $9.5 million net fund gets distributed on a pro-rata basis — the more people who file, the smaller each individual share.

To calculate your claim, you must provide purchase, acquisition, and sale information for GSX securities from June 6, 2019, through January 15, 2021, including the number of shares held at the close of trading on January 15, 2021. The Plan of Allocation — the formula used to weight different transaction types — is available in the full notice at the official settlement website.

How to File a Claim

Step 1 — Go to gsxsecuritiessettlement.com and access the online claim form or download the PDF version.

Step 2 — Enter your personal details including your name, address, and the last four digits of your Social Security number or taxpayer identification number.

Step 3 — Enter your complete GSX transaction history — dates of purchase, number of shares, price paid, and any sales during the relevant period.

Step 4 — Upload supporting brokerage statements or trade confirmations that document your purchases and sales of GSX ADSs.

Step 5 — Submit the completed form online by May 30, 2026, or mail the paper form to: GSX Securities Settlement, c/o JND Legal Administration, P.O. Box 91131, Seattle, WA 98111. Mailed forms must be received by the administrator by the May 30, 2026 deadline.

Step 6 — Save your confirmation number or take a screenshot of your completed submission for your records.

Estimated time to complete: 10–20 minutes, depending on the number of transactions to enter.

Key Deadlines

Milestone	Date
Class Period Ends	October 20, 2020
Lawsuit Filed	April 17, 2020
Settlement Agreement Reached	TBD
Claims Period Opens	TBD
Opt-Out Deadline	May 28, 2026
Claim Filing Deadline	May 30, 2026
Final Approval Hearing	June 4, 2026
Expected Payment Date	TBD (4–9 months after final approval)

Frequently Asked Questions

Do I need a lawyer to file a claim? 

No. You can file your claim directly at gsxsecuritiessettlement.com without hiring your own attorney. Class counsel already represents all class members collectively at no individual cost to you. If you want independent advice about your specific losses, you may hire your own attorney at your own expense.

Is this settlement legitimate? 

Yes. The case is Wu v. GSX Techedu Inc. et al., Case No. 2:20-cv-04457-MEF-JRA, pending in the United States District Court for the District of New Jersey. JND Legal Administration is the court-appointed claims administrator.

When will I receive my payment? 

The entire payment process typically takes 4 to 9 months after the claim deadline, though the exact timing depends on the court and settlement administration. Payments will not go out until after the June 4, 2026 final approval hearing and any appeals are resolved.

What if I miss the May 30, 2026 deadline? 

If you do not file a claim by May 30, 2026, you will not receive any payment from this settlement. You will still be bound by the settlement’s release of claims against GSX Techedu and the individual defendants unless you opted out before May 28, 2026.

What is the difference between opting out and objecting?

 Opting out removes you from the settlement entirely — you get no payment but keep the right to sue GSX independently. Objecting means you stay in the class but formally challenge the terms before the court. Both actions require written submissions before their respective deadlines. Consult an attorney before choosing either path.

Will this settlement payment affect my taxes?

 Securities settlement payments are generally treated as a return of capital or capital gain depending on your individual tax situation. The tax treatment depends on your original cost basis and holding period. Consult a tax professional before filing your claim.

I bought GSX shares during the IPO. Do I still qualify? 

Yes. The settlement class specifically includes those who purchased ADSs in or traceable to the company’s initial public offering on or about June 6, 2019, and the secondary public offering on or about November 20, 2019.

GSX is now called Gaotu Techedu. Does the name change affect my claim?

 No. The settlement covers purchasers of GSX Techedu, Inc., now known as Gaotu Techedu Inc. The name change does not affect your eligibility or the claims process in any way.

Sources & References

• Official Settlement Website: www.gsxsecuritiessettlement.com
• Court Docket: Wu v. GSX Techedu Inc. et al., Case No. 2:20-cv-04457-MEF-JRA (D.N.J.)
• Claims Administrator: JND Legal Administration, P.O. Box 91131, Seattle, WA 98111

Last Updated: March 26, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.