Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of New Oriental Education & Technology Group Inc. (“New Oriental Education” or the “Company”) (NYSE: EDU) between July 21, 2009 and July 17, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”).
If you purchased the American Depository Shares (“ADSs”) of New Oriental Education during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/new-oriental-education-technology-group-inc-edu.
New Oriental Education, a Chinese corporation headquartered in Beijing, China, is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges (1) that the Company lacked a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., a variable interest entity of the Company, and its wholly-owned subsidiaries, into New Oriental Education’s consolidated financial statements; (2) that, as a result, the Company was improperly consolidating Beijing New Oriental Education & Technology (Group) Co., Ltd., into New Oriental Education’s consolidated financial statements; (3) that, contrary to the Company’s representations, New Oriental Education’s entire store network is not company-owned because New Oriental Education has numerous franchisees; (4) that upfront franchise and other fees had inflated New Oriental Education’s cash balances; (5) that the schools that conduct New Oriental Education’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. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.