Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2020
Revenue-reporting allegations and SEC investigation
More than a dozen research reports questioned whether Gaotu, then GSX Techedu, had inflated or otherwise misstated revenue. Short-selling firm Muddy Waters Research was associated with critical reporting, and the U.S. Securities and Exchange Commission investigated the company. The supplied material does not establish a final regulatory finding.
2020
Repeatedly questioned by short sellers over user and financial data; company denies allegations
In 2020, GSX Techedu was successively questioned by several short-selling firms over its revenue, users, and bot ratios; Gaotu was its core brand. The company rebutted the reports, saying they omitted parts of its business and fabricated evidence. This entry records public allegations and responses and does not establish that financial fraud occurred.
2020
Allegations of inflated revenue
More than a dozen research reports accused GSX Techedu of inflating or overstating its revenue. Reports from short-selling firms, including Muddy Waters Research, intensified public and investor scrutiny. The available source describes allegations and subsequent investigation rather than a final legal finding.
2020
Gushengtang responds to short-selling allegations
Company response
In April 2020, media renewed coverage of a short-seller report concerning Gushengtang (Gaotu Techedu). The report alleged that the company exaggerated financial data and engaged in order fabrication. Gushengtang founder Chen Xiangdong responded to the renewed coverage, stating that integrity had been a core company value since its founding. The response addressed the allegations without adding further details beyond the founder's statement on company values.
Company response
Clarification — 跟谁学
针对媒体近两天的再次报道，跟谁学创始人陈向东4月8日发文回应
Source excerpt
陈向东称，从创办跟谁学的第一天，公司就确定了“诚信”的核心价值观
里面声称跟谁学存在夸大财务数据、刷单等行为。
针对媒体近两天的再次报道，跟谁学创始人陈向东4月8日发文回应
2020
Citron alleges fabricated GSX users and undisclosed related parties
Issue disclosure
In its second short-selling report, Citron alleged that 40% of GSX's 2019 registered users were fake and that undisclosed related parties were used to fabricate the company's financial position and facilitate order inflation. GSX called the report's accusations untrue and reserved the right to sue parties providing false evidence.
Citron's second short-selling report alleged that 40% of GSX's 2019 registered users were fake and that undisclosed related parties were used to fabricate the company's financial position and facilitate order inflation. GSX called the report's accusations untrue and reserved the right to sue parties providing false evidence.
Company response
Denial — 跟谁学
随后跟谁学方面发布公告称，香橼做空报告充满不实指控，对于提供不实证据的相关方，公司保留法律诉讼权利。
Source excerpt
随后跟谁学方面发布公告称，香橼做空报告充满不实指控，对于提供不实证据的相关方，公司保留法律诉讼权利。
4月30日夜间，香橼发布第二份针对跟谁学的做空报告，称一名跟谁学员工解释公司2019注册用户中有40%是假的，并存在多个未披露的关联方，用来捏造其财务状况、为刷单提供便利。
2020
SEC requests data from GSX following short-seller reports
Investigation
After a series of short-seller reports, the SEC's Division of Enforcement asked GSX to assist by providing certain financial and operational data dating from January 1, 2017. The inquiry was ongoing, with no final outcome reported.
Company response
Ongoing disclosure — 跟谁学
公司目前正在积极配合该问询，但无法预测该项问询工作的时间、结果及最终结论。
Ongoing disclosure — 跟谁学
跟谁学还在财报中主动披露
Source excerpt
公司目前正在积极配合该问询，但无法预测该项问询工作的时间、结果及最终结论。
在披露经营报数据的同时，跟谁学还在财报中披露，在一系列做空报告于2020年2月到7月之间发布之后，美国证券交易委员会执法部请公司协助提供从2017年1月1日起的部分财务及运营数据。
第三方专业顾问调查及SEC问询仍在进行中，目前暂无更多可披露信息。
2020
VIPKID sues Genshuixue over alleged trade secret infringement
Lawsuit filed
VIPKID sued Genshuixue, alleging that Genshuixue and a former VIPKID employee jointly infringed VIPKID’s trade secrets. VIPKID sought an end to the alleged infringement and RMB 3 million in compensation and expenses.
Source excerpt
在线教育企业VIPKID于 4 月 13 日向北京市海淀区法院提交起诉书，起诉跟谁学“指使员工使用不正当手段窃取用户名单等商业机密”，并索赔 800 万元。
据中国网财经报道，在线教育企业VIPKID已于 4 月 13 日向北京市海淀区法院提交起诉书，起诉另一在线教育企业跟谁学“指使员工使用不正当手段窃取用户名单等商业机密”，并索赔 800 万元，目前北京市海淀区法院已受理此案。
记者从VIPKID方面获悉，其起诉案由为侵犯商业秘密。
Reported U.S. SEC investigation
The U.S. Securities and Exchange Commission was reported to be investigating Gaotu Techedu in connection with the revenue allegations. No final outcome is specified in the supplied reference material.