Glancy Binkow & Goldberg LLP, representing investors of New Oriental Education & Technology Group Inc. (“EDU” or the “Company”) (NYSE:EDU), announces that all purchasers of the American Depositary Shares of EDU between July 21, 2009 and July 17, 2012, inclusive (the “Class Period”), have until September 21, 2012 to file a motion with the Court to be appointed as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the Central District of California.
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 EDU’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 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) 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.
If you purchased the American Depositary Shares of EDU between July 21, 2009 and July 17, 2012, you may move the Court, no later than September 21, 2012 to serve as Lead Plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent Class member. To learn more about this action, or if you 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, 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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