An investor in NYSE:EDU shares filed a lawsuit over alleged violations of Federal Securities Laws by New Oriental Education & Tech Grp in connection with certain allegedly false and misleading statements.
Investors who purchased shares of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) have certain options and for certain investors are short and strict deadlines running. Deadline: February 13, 2017. NYSE:EDU investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of certain purchasers of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) common shares that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Defendants allegedly made false and/or misleading statements and/or failed to disclose that New Oriental engaged in college application fraud, and that as a result, Defendants’ statements about New Oriental’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
New Oriental Education & Tech Grp reported that its Total Revenue rose from over $1.24 billion for the 12 months period that ended on May 31, 2015 to over $1.47 billion for the 12 months period that ended on May 31, 2016 and that its Net Income for those respective time periods increased from $193.01 million to $224.88 million.
On December 2, 2016, an article was published that alleged that New Oriental Education & Tech Grp has been accused of engaging in college application fraud. The article stated that “[e]ight former and current New Oriental employees…told Reuters the firms have engaged in college application fraud, including writing application essays and teacher recommendations, and falsifying high school transcripts.” Shortly thereafter on the same day, Reuters published an article announcing that in the wake of its earlier report detailing allegations of academic fraud at New Oriental, the American International Recruitment Council (“AIRC”) stated that it “will investigate the company in response to the report”, and the AIRC’s president-elect called the allegations “highly concerning.” Shares of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) dropped on December 2, 2016, to as low as $37.16 per share.
Those who purchased NYSE:EDU shares have certain options and should contact the Shareholders Foundation.
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