The Law Offices of Todd M. Garber announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class (the “Class”) comprising all persons or entities who purchased 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”).
EDU provides private educational services, primarily in China. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, and failed to disclose material adverse facts about EDU’s business, operations and prospects. Specifically, the Complaint alleges that the defendants misrepresented 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.
On July 17, 2012, EDU disclosed that the SEC had issued a formal order of investigation captioned, “In the Matter of New Oriental Education & Technology Group Inc.” According to EDU, the Company believes that the investigation concerns whether there is a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., Ltd. into EDU’s consolidated financial statements.
If you are a member of the above-described Class, 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 any action at this time, or you may retain counsel of your choice. If you have information or would like to learn more about these claims, or if you 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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.