The Law Offices of Todd M. Garber announces that it is investigating potential claims against New Oriental Education & Technology Group Inc. (“EDU” or the “Company”) (NYSE:EDU) concerning possible violations of federal securities laws. The investigation is related to allegations that certain statements issued by the Company between July 21, 2009 and July 17, 2012 regarding EDU’s business, operations and prospects were false and/or misleading. EDU provides private educational services, primarily in China.
Specifically, the investigation is related to allegations that EDU and certain of the Company’s executive officers misrepresented 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; (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.
If you purchased the American Depositary Shares of EDU between July 21, 2009 and July 17, 2012, if you have information or would like to learn more about this investigation, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Todd M. Garber, Esquire, of the Law Offices of Todd M. Garber, by telephone at 213-700-7262 or by email to firstname.lastname@example.org.
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