Education Tech Firm’s Investors Sue Over Competition, Stock Drop

2U Inc. has been hit with a new suit, alleging it kept increased competition, problems with some online education programs, and slowed program launches from investors.

The education technology firm didn’t tell investors how much competition some of its largest online graduate programs faced, according to the would-be class complaint filed in the U.S. District Court for the Southern District of New York.

2U’s share price fell $23.70—almost 65%—the day after the company revised its fiscal year 2019 guidance and projected a net loss of almost double what it initially expected, the complaint said.

Causes of Action: Exchange Act §10(b)—Using ...