This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Faruqi & Faruqi, LLP Files Class Action Lawsuit Against New Oriental Education & Technology Group, Inc. (EDU)

NEW YORK, Aug. 30, 2012 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York, Case No. 1:12-cv-6619-JGK, on behalf of all persons who purchased or otherwise acquired New Oriental Education & Technology Group, Inc. ("EDU" or the "Company") (NYSE: EDU) American Depository Shares ("ADSs") and/or purchased or sold EDU options contracts between July 21, 2009 and July 23, 2012, inclusive (the "Class Period") and suffered damages as a result.

(Logo:  http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )

If you wish to obtain information concerning this action or view a copy of the complaint, you can do so by clicking here: http://www.faruqilaw.com/EDU.  There is no cost or obligation to you. 

EDU and its executives are charged with violations of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.  Specifically, the complaint alleges that defendants knew or recklessly failed to inform investors that:  (1) the Company improperly consolidated the earnings of a variable interest entity into its financial statements; (2) a significant number of the Company's schools and learning centers were not company-owned, but were instead operated by independent franchisees; (3) upfront franchise and other fees had artificially inflated the Company's cash balances; and (4) the Company lacked adequate internal and financial controls and as a result of the foregoing, EDU's financial statements were materially false and misleading.

On July 17, 2012, the Company disclosed that the Securities and Exchange Commission "had issued a formal order of investigation" as to whether the Company appropriately consolidated the earnings of Beijing New Oriental Education & Technology (Group) Co., Ltd., a variable interest entity of the Company, and its wholly-owned subsidiaries.  On this news, the price of EDU's ADSs plummeted by $7.64 or more than 34%, to close at $14.62 on July 17, 2012.

On July 18, 2012, independent securities research firm Muddy Waters, LLC issued an analyst report predicting that the Company "will have a significant restatement, and that its auditor will resign."  On this news, the price of EDU's ADSs declined by an additional $5.12 or more than 35%, to close at $9.50 on July 18, 2012.

Plaintiff now seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired EDU ADSs and/or purchased or sold EDU options contracts between July 21, 2009 and July 23, 2012, excluding defendants and their affiliates, and were damaged thereby.  Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.

If you purchased or sold EDU option contracts and/or purchased or otherwise acquired EDU ADSs during the Class Period and were damaged thereby, you may, not later than September 21, 2012 , move the court to serve as lead plaintiff of the class, if you so choose.  In order to discuss this action, or if you have any questions concerning this notice or your rights or interests, please contact:

Faruqi & Faruqi, LLP369 Lexington Avenue, 10th Floor New York, NY 10017ATTN: Richard Gonnello, Esq. or Francis P. McConville, Esq. rgonnello@faruqilaw.com or fmcconville@faruqilaw.comToll Free: (877) 247-4292Phone: (212) 983-9330

Attorney Advertising. (C) 2012 Faruqi & Faruqi, LLP. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter.

SOURCE Faruqi & Faruqi, LLP

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs