Wolf Haldenstein Adler Freeman & Herz LLP today filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all persons who purchased the American Depository Shares (“ADSs”) of New Oriental Education & Technology Group, Inc. (“New Oriental” or the “Company”) [NYSE:EDU] between July 21, 2009, and July 17, 2012, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
The case name is Gabel v. New Oriental Education & Technology Group, Inc., et al., Civil Action No. 12-cv-5963. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
During the Class Period, New Oriental issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, business prospects, and financial condition. As a result of these materially false and misleading statements, the price of the Company’s securities was artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.
The Complaint alleges that throughout the Class Period, Defendants made false and misleading statements about the Company’s performance and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) the Company improperly consolidated into its financial statements the earnings of a variable interest entity and its wholly-owned subsidiaries; (2) the Company lacked adequate internal and financial controls; and (3) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
As a result of defendants’ false statements, New Oriental’s ADSs traded at artificially inflated price during the Class Period. Thus when the truth was revealed Plaintiff and the other members of the Class suffered significant damages as a result thereof.
If you purchased New Oriental ADSs during the Class Period, you may request that the Court appoint you as lead plaintiff by September 21, 2012. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Fred T. Isquith, Esq., Gregory M. Nespole, Esq., Martin E. Restituyo, Esq., or Derek Behnke), via e-mail at firstname.lastname@example.org or visit our website at www.whafh.com. All e-mail correspondence should make reference to New Oriental.