First High-School Education Group Co., Ltd.
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According to the lawsuit, the IPO Registration Statement was materially false and misleading and omitted to state: (1) the new rules, regulations, and policies to be implemented by the Chinese government following the Two Sessions parliamentary meetings were far more severe than represented to investors and posed a material adverse threat to First High-School Education Group and its business; (2) contemplated Chinese regulations and rules regarding private education were leading to a slowdown of government approval to open new educational facilities which would have a negative effect on First High-School Education Group’s enrollment and growth; and (3) as a result, the Registration Statement’s representations regarding First High-School Education Group’s historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of First High-School Education Group at the time of the IPO, and were materially false and misleading and lacked a factual basis. When the true details entered the market, the lawsuit claims that investors suffered damages.