r/chinastocks
$GSX $9.5M settlement deadline is May 30, three weeks out
Reminder to claim your share of the $9.5M GSX investor settlement by May 30, following its massive fraud and 80% stock crash.
- Exposed for massive fraud with 73% bot users and overstated revenues.
- Stock crashed over 80% from peak following short-seller reports and SEC investigation.
Quick heads up on this one before the window closes.
GSX Techedu, the Chinese K-12 online education company that turned out to have 73% bot users, settled its investor lawsuit for $9.5 million. Claims are open now and the deadline is May 30, 2026.
The short version if you missed it: GSX IPO'd in 2019 promoting triple-digit revenue growth and surging enrollment. By 2020, Citron said revenues were overstated by 70%, Muddy Waters said 73% of users were bots, and the SEC launched an investigation. The stock dropped over 80% from peak. Three short-sellers. Five separate stock drops. One SEC investigation. Eventually a settlement.
Key details:
- Deadline: May 30, 2026
- Eligible if you bought $GSX between June 6, 2019 and October 20, 2020
- Payout: \~$0.20/share
Submit your claim before the deadline.
73% bot users on an education platform is still one of the wilder fraud details from the Chinese ADR era. Anyone here catch this one in real time?
A textbook case of how hype-driven growth can unravel fast once user authenticity and revenue quality come under scrutiny, the repricing is brutal.
Yeah seriously. Once people started doubting if the growth was actually real, the stock got crushed sooo fast. The switch up from investors was brutal