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 (“ADS”) of Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE:AMBO) between May 18, 2011 and May 16, 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 email@example.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Ambow and certain of the Company’s executive officers with violations of federal securities laws. Ambow provides educational and career enhancement services in the People’s Republic of 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 Ambow’s business, operations and prospects. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that certain of the Company’s distributors did not have an adequate history of timely payment; (2) that, as such, the collection of resulting receivables from these distributors was not reasonably assured; (3) that, as a result, the Company was improperly recognizing revenue on sales to these distributors; (4) that the Company was improperly accounting for certain business acquisitions; (5) that, as a result of the foregoing, the Company’s financial results were misstated during the Class Period; (6) that the Company lacked adequate internal and financial controls; and (7) that, as a result of the above, the Company’s financial results were materially false and misleading at all relevant times.
On April 30, 2012, Ambow unexpectedly announced that it would be unable to timely file its Annual Report on Form 20-F with the SEC for the 2011 fiscal year. Thereafter, on May 16, 2012, Ambow disclosed that the Company was further delaying the filing of its 2011 Annual Report and that the Company had identified certain preliminary adjustments to its previously issued 2011 unaudited financial statements. According to the Company, Ambow expected, among others: (1) to change its revenue recognition method with respect to sales to certain distributors, leading to the reversal of between $13.5 million (RMB85 million) and $15.1 million (RMB95 million) of revenue previously recognized in 2011; (2) to make a bad debt provision of between $2.1 million (RMB13 million) and $2.4 million (RMB15 million); and (3) to increase its depreciation and other expenses by between $0.5 million (RMB3 million) and $0.6 million (RMB3.5 million).
As a result of this news, the Company's shares declined $0.99 per share, or 17.55%, to close on May 16, 2012, at $4.65 per share, on unusually heavy volume, and further declined $0.30 per share, or 6.45%, to close on May 17, 2012, at $4.35 per share, also 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 sixty 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 firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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