NEW YORK, 08 Feb. 10, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in New Oriental Education and Technology Group Inc. (“New Oriental” or the “Company”) (NYSE:EDU). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529 ext. 7980.
The investigation focuses on whether New Oriental and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
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On April 25, 2021, media reported that the city of Beijing had fined four online education agencies, including New Oriental subsidiary Koolearn, the maximum fine of 500,000 yuan (about $80,000) each. for misleading customers with false advertisements regarding course prices. On May 12, 2021, news reports revealed that an impending Chinese government crackdown on the tutoring industry would be broader and more drastic than previously publicly known, including that regulators had already taken adverse action against New Oriental and other for-profit organizations. tutoring companies.
Following this news, the price of New Oriental’s American Depository Share (“ADS”) fell $2.77 per ADS, or 19.4%, over the next two trading sessions to close at $11.51 per ADS on May 13, 2021.
On June 1, 2021, Chinese regulators announced that they had fined 15 off-campus educational institutions, including New Oriental, for illegal activities such as false advertising and fraud.
On this news, the price of New Oriental’s ADS fell $1.77 per ADS, or 16%, over the next two trading sessions to close at $9.32 per ADS on June 3, 2021.
Then, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning companies that teach the school curriculum from making a profit, raising capital or going public, effectively ending any further growth. potential of the for-profit tutoring sector in China. On July 25, 2021, New Oriental released an “update” on the new regulations, which stated that the company “will comply with relevant rules and regulations when providing educational services” and “expects these measures have a significant negative impact on its future. academic tutoring services relating to academic subjects in the Chinese compulsory education system.
On this news, New Oriental’s ADS price fell $4.46 per ADS, or almost 70%, over the next two trading sessions to close at $1.94 per ADS on July 26, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980