Defendant Name: Gridsum Holding Inc.

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 39813210

Initial Case Details

Legal Case Name SEC (Plaintiff) v. Guosheng Qi and Gridsum Holding Inc. (Defendants), and Huijie He (Relief Defendant)
First Document Date 07-Sep-2023
Initial Filing Format Civil Proceeding
Case Number 23-cv-07924
Allegation Type Issuer Reporting and Disclosure
Federal District Court New York, Southern District of New York

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(1)
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, Guosheng Qi is alleged to have aided and abetted Gridsum Holding Inc.'s violation of Rule 12b-20 of the Exchange Act.
Guosheng Qi is alleged to have aided and abetted Gridsum Holding Inc.'s violation of Sec 13(a) of the Exchange Act.
Guosheng Qi is alleged to have aided and abetted Gridsum Holding Inc.'s violation of Rule 13a-1 of the Exchange Act.

Resolutions

First Resolution Date

Related Documents:

comp25822 07-Sep-2023 Complaint
Complaint
The SEC stated: "This case involves Defendants’ misuse and unreported use of funds raised in a 2016 initial public offering (IPO) as well as Defendants’ failure to disclose millions of dollars in related-party transactions that benefitted Defendant Qi’s family members."
LR-25822 07-Sep-2023 Litigation Release
SEC Charges China-Based Big Data Analytics Company with Failure to Disclose Related Party Payments, including more than $5 million that benefitted the CEO's Family
On September 7, 2023, the SEC stated: "The SEC today filed a complaint against Gridsum Holding, Inc. (formerly Nasdaq: GSUM) and its CEO Guosheng Qi charging them with misuse and unreported use of funds raised in a 2016 U.S. initial public offering (IPO) as well as failure to disclose millions of dollars in related-party transactions that benefitted Defendant Qi’s family members. According to the complaint, from September 2016 to June 2020, Gridsum, and Qi directed a series of undisclosed payments to Qi’s wife and mother-in-law for supposed consulting contracts between Gridsum and a company controlled by Qi’s mother-inlaw. The complaint alleges that the total value of these related party transactions equaled $7.1 million, and Qi and his family directly or indirectly received at least $5.2 million."

Other Defendants in Action:

Guosheng Qi
Huijie He