Law Offices of Howard G. Smith announces that all purchasers of the American Depositary Shares 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”), have until September 21, 2012 to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit filed in the United States District Court for the Central District of California.
EDU provides private educational services, primarily in China. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements or failed to disclose material adverse facts about EDU’s business, operations and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked 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; (2) as a result, the Company was improperly consolidating Beijing New Oriental Education & Technology (Group) Co., Ltd., into EDU’s consolidated financial statements; (3) contrary to the Company’s representations, EDU’s entire store network is not Company-owned because EDU has numerous franchisees; (4) upfront franchise and other fees had inflated EDU’s cash balances; (5) the schools that conduct EDU’s operations were ultimately state property; (6) as a result of the foregoing, the Company’s financial results were misstated during the Class Period; (7) the Company lacked internal and financial controls; and (8), as a result, the Company’s financial statements and financial results were materially false and misleading at all relevant times.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased EDU American Depositary Shares between July 21, 2009 and July 17, 2012, you have certain rights, and have until September 21, 2012 to move for lead plaintiff status. To be a member of the class you need not take any action at this time, or may retain counsel of your choice. If you wish to discuss this action or have questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.