Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of New Oriental Education & Technology Group Inc. (EDU) on Behalf of Investors
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of New Oriental Education & Technology Group Inc.(“New Oriental” or the “Company”) (NYSE: EDU) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your New Oriental investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/new-oriental-education-technology-group-inc-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On May 12, 2021, media reported that the impending crackdown by the Chinese government on the online education industry would be more drastic than previously reported. Anticipated regulations included banning on-campus tutoring classes and weekend tutoring, as well as industry-wide fee limitations.
On this news, New Oriental’s American Depositary Shares (“ADSs” or “shares”) fell 20% to close at $11.51 per share on May 13, 2021.
Then, on June 1, 2021, Chinese regulators announced that they had fined New Oriental and 14 other off-campus training institutions for false advertisement and fraud, including fabricating teacher qualifications, exaggerating the effects of training, and fabricating user reviews. New Oriental was accused of faking the teaching experience of 74% of teachers surveyed. New Oriental had also been accused of providing false pricing information, engaging in false publicity and price fraud, and failing to honor its contractual commitment to students.
On this news, the price of New Oriental’s ADSs dropped 16% to close at $9.32 per share on June 3, 2021, thereby injuring investors further.
Then, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning for-profit teaching and tutoring companies. On July 25, 2021, New Oriental responded that complying with the new regulations would “have a material adverse impact on its after-school tutoring services.”
On this news, New Oriental’s shares fell 70% to close at $1.94 per ADS on July 26, 2021, thereby injuring investors further.
Whistleblower Notice: Persons with non-public information regarding New Oriental should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email firstname.lastname@example.org.
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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