The Law Offices of Todd M. Garber announces that shareholders of New Oriental Education & Technology Group Inc. (“EDU” or the “Company”) (NYSE:EDU) have until September 21, 2012 to move for lead plaintiff status in the class action lawsuit filed in the United States District Court for the Central District of California. The lawsuit was filed on behalf of all purchasers of EDU’s American Depositary Shares 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.
If you purchased EDU American Depositary Shares 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 any action at this time. You may retain counsel of your choice or take no action and remain an absent Class member. If you wish to discuss this action or have any questions concerning this Notice 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 email@example.com.
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