Wolf Haldenstein Adler Freeman & Herz LLP today filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all persons who purchased the American Depository Shares (“ADSs”) of New Oriental Education & Technology Group, Inc. (“New Oriental” or the “Company”) [NYSE:EDU] between July 21, 2009, and July 17, 2012, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
The case name is Gabel v. New Oriental Education & Technology Group, Inc., et al., Civil Action No. 12-cv-5963. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
During the Class Period, New Oriental issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, business prospects, and financial condition. As a result of these materially false and misleading statements, the price of the Company’s securities was artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.
The Complaint alleges that throughout the Class Period, Defendants made false and misleading statements about the Company’s performance and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) the Company improperly consolidated into its financial statements the earnings of a variable interest entity and its wholly-owned subsidiaries; (2) the Company lacked adequate internal and financial controls; and (3) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
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