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Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against New
Oriental Education & Technology Group Inc.
27 minutes ago - BusinessWire via Comtex
Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class
action lawsuit in the United States District Court for the Central District
of California on behalf of a class consisting of all persons or entities who
purchased the American Depositary Shares ("ADSs") of New Oriental Education
& Technology Group Inc. ("EDU" or the "Company") (NYSE:EDU) between July 21
, 2009 and July 17, 2012, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow &
Goldberg LLP. Please contact us by phone to discuss this action or to obtain
a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224,
by email at s**********[email protected], or visit our website at http://www.glancylaw.com.
The Complaint charges EDU and certain of the Company's executive officers
with violations of federal securities laws. EDU provides private educational
services, primarily in China. The Complaint alleges that throughout the
Class Period the defendants made false and/or misleading statements, as well
as failed to disclose material adverse facts about the EDU's business,
operations and prospects. Specifically, the Complaint alleges that the
defendants made false and/or misleading statements and/or failed to disclose
Beijing New Oriental Education & Technology (Group) Co., Ltd., a variable
interest entity of the Company, and its wholly-owned subsidiaries, into EDU'
s consolidated financial statements; (2) that, as a result, the Company was
improperly consolidating Beijing New Oriental Education & Technology (Group)
Co., Ltd., into EDU's consolidated financial statements; (3) that, contrary
to the Company's representations, EDU's entire store network is not company
-owned because EDU has numerous franchisees; (4) that upfront franchise and
other fees had inflated EDU's cash balances; (5) that the schools that
conduct EDU's operations were ultimately state property; (6) that, as a
result of the foregoing, the Company's financial results were misstated
during the Class Period; (7) that the Company lacked internal and financial
controls; and (8) that, as a result, the Company's financial statements and
financial results were materially false and misleading at all relevant times.
On July 17, 2012, EDU disclosed that on July 13, 2012, the Company was
informed that the SEC had issued a formal order of investigation captioned,
"In the Matter of New Oriental Education & Technology Group Inc." According
to EDU, the Company believes that the investigation concerns whether there
is a sufficient basis for the consolidation of Beijing New Oriental
Education & Technology (Group) Co., Ltd., a variable interest entity of the
Company, and its wholly-owned subsidiaries, into EDU's consolidated
financial statements. On this news, shares of the Company declined $7.64 per
share, or 34.32%, to close on July 17, 2012, at $14.62 per share, on
unusually heavy volume.
Thereafter, on July 18, 2012, a report, entitled "Initiating Coverage on EDU
- Strong Sell," was published by the research firm Muddy Waters Research.
The firm rated EDU a "Strong Sell because it is probable that EDU will have
a significant restatement and that its auditor will resign." On this news,
shares of the Company declined $5.12 per share, or 35.02%, to close on July
18, 2012, at $9.50 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with significant
experience in prosecuting class actions and substantial expertise in actions
involving corporate fraud.
If you are a member of the class described above, you may move the Court, no
later than 60 days from the date of this Notice, to serve as lead plaintiff
; however, you must meet certain legal requirements. 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 Michael Goldberg,
Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100
, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free
at (888) 773-9224, by e-mail to s**********[email protected], or visit our
website at http://www.glancylaw.com.
SOURCE: Glancy Binkow & Goldberg LLP
Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg
(310) 201-9150 or (888) 773-9224
s**********[email protected]
www.glancylaw.com
Oriental Education & Technology Group Inc.
27 minutes ago - BusinessWire via Comtex
Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class
action lawsuit in the United States District Court for the Central District
of California on behalf of a class consisting of all persons or entities who
purchased the American Depositary Shares ("ADSs") of New Oriental Education
& Technology Group Inc. ("EDU" or the "Company") (NYSE:EDU) between July 21
, 2009 and July 17, 2012, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow &
Goldberg LLP. Please contact us by phone to discuss this action or to obtain
a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224,
by email at s**********[email protected], or visit our website at http://www.glancylaw.com.
The Complaint charges EDU and certain of the Company's executive officers
with violations of federal securities laws. EDU provides private educational
services, primarily in China. The Complaint alleges that throughout the
Class Period the defendants made false and/or misleading statements, as well
as failed to disclose material adverse facts about the EDU's business,
operations and prospects. Specifically, the Complaint alleges that the
defendants made false and/or misleading statements and/or failed to disclose
Beijing New Oriental Education & Technology (Group) Co., Ltd., a variable
interest entity of the Company, and its wholly-owned subsidiaries, into EDU'
s consolidated financial statements; (2) that, as a result, the Company was
improperly consolidating Beijing New Oriental Education & Technology (Group)
Co., Ltd., into EDU's consolidated financial statements; (3) that, contrary
to the Company's representations, EDU's entire store network is not company
-owned because EDU has numerous franchisees; (4) that upfront franchise and
other fees had inflated EDU's cash balances; (5) that the schools that
conduct EDU's operations were ultimately state property; (6) that, as a
result of the foregoing, the Company's financial results were misstated
during the Class Period; (7) that the Company lacked internal and financial
controls; and (8) that, as a result, the Company's financial statements and
financial results were materially false and misleading at all relevant times.
On July 17, 2012, EDU disclosed that on July 13, 2012, the Company was
informed that the SEC had issued a formal order of investigation captioned,
"In the Matter of New Oriental Education & Technology Group Inc." According
to EDU, the Company believes that the investigation concerns whether there
is a sufficient basis for the consolidation of Beijing New Oriental
Education & Technology (Group) Co., Ltd., a variable interest entity of the
Company, and its wholly-owned subsidiaries, into EDU's consolidated
financial statements. On this news, shares of the Company declined $7.64 per
share, or 34.32%, to close on July 17, 2012, at $14.62 per share, on
unusually heavy volume.
Thereafter, on July 18, 2012, a report, entitled "Initiating Coverage on EDU
- Strong Sell," was published by the research firm Muddy Waters Research.
The firm rated EDU a "Strong Sell because it is probable that EDU will have
a significant restatement and that its auditor will resign." On this news,
shares of the Company declined $5.12 per share, or 35.02%, to close on July
18, 2012, at $9.50 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with significant
experience in prosecuting class actions and substantial expertise in actions
involving corporate fraud.
If you are a member of the class described above, you may move the Court, no
later than 60 days from the date of this Notice, to serve as lead plaintiff
; however, you must meet certain legal requirements. 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 Michael Goldberg,
Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100
, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free
at (888) 773-9224, by e-mail to s**********[email protected], or visit our
website at http://www.glancylaw.com.
SOURCE: Glancy Binkow & Goldberg LLP
Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg
(310) 201-9150 or (888) 773-9224
s**********[email protected]
www.glancylaw.com
