Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired New Oriental Education & Technology Group Inc. (“New Oriental”) (NYSE: EDU) American Depositary Shares (“ADSs”) between September 27, 2016 through December 1, 2016, both dates inclusive (the “Class Period”).
According to the complaint, New Oriental provides private educational services under the New Oriental brand in the People’s Republic of China.
The Class Period commences on September 27, 2016, when the company filed a Form 20-F for the fiscal year ended May 31, 2016 with the SEC. The Form 20-F stated, in part, “Our consultants help students through the application and admission process for overseas educational institutions and provide useful college, graduate and career counseling advice to help students make informed decisions. We also counsel students with the immigration process for overseas studies, such as obtaining visas and housing. We charge each student a fee based on the scope of consulting services requested by the student.”
According to the complaint, on December 2, 2016, Reuters published a report detailing allegations of academic fraud at the company. Specifically, Reuters reported that eight former and current New Oriental employees informed Reuters that New Oriental “engaged in college application fraud, including writing application essays and teacher recommendations, and falsifying high school transcripts.”
Reuters further reported that the American International Recruitment Council, which certifies agencies that recruit foreign students on behalf of U.S. colleges, will investigate the company in response to the Reuters report.
Following this news, shares of the company fell $6.99 per share or over 14% from its previous closing price to close at $42.00 per share on December 2, 2016.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the company engaged in college application fraud; and (2) as a result, the defendants’ statements about the company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you are a member of the class described above, you may no later than February 13, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.
In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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