STEVENSON, Md., June 20, 2012 (GLOBE NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced 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").
If you have suffered a net loss for all transactions in Ambow Education Holding Ltd. ADS during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at email@example.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than August 10, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that certain of the Company's distributors did not have an adequate history of timely payment, that, as such, the collection of resulting receivables from these distributors was not reasonably assured, that, as a result, the Company was improperly recognizing revenue on sales to these distributors, that the Company was improperly accounting for certain business acquisitions, that, as a result of the foregoing, the Company's financial results were misstated during the Class Period, and that the Company lacked adequate internal and financial controls. According to the complaint, after, on April 30, 2012, the Company announced that it would be unable to timely file its Annual Report on Form 20-F with the SEC for the 2011 fiscal year, and, after, 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, including anticipating changing 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, making a bad debt provision of between $2.1 million (RMB13 million) and $2.4 million (RMB15 million), and increasing its depreciation and other expenses by between $0.5 million (RMB3 million) and $0.6 million (RMB3.5 million), the value of Ambow shares declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation Stevenson, Maryland 410/415-6616 firstname.lastname@example.org