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2U faces class-action lawsuit over business pivot

Andy Medici
2U faces class-action lawsuit over business pivot

Education technology company 2U Inc. is facing a class-action lawsuit after it scaled back its core graduate program business in the face of what its leaders described as increased regional competition and a changing market. Plaintiff Aaron Harper, who purchased about 1,319 shares of 2U for $40.22 per share on May 9 and May 10, is asking for damages, attorney fees and a jury trial, as well as class-action status for anyone who bought shares in the Lanham company from Feb. 25 to July 30, according to a lawsuit filed Wednesday in New York's Southern District Court. Harper, in his complaint, alleges 2U made materially false and misleading statements and failed to disclose adverse facts about the business, including increased competition.