According to the Complaint, on July 17, 2012, New Oriental Education issued a press release disclosing that the Company had been informed on July 13, 2012 that the U.S. Securities and Exchange Commission (the “SEC”) had issued a formal order of investigation captioned, “In the Matter of New Oriental Education & Technology Group Inc.” 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., a variable interest entity of the Company, and its wholly-owned subsidiaries, into the Company’s consolidated financial statements. On this news, shares of the Company declined $7.64 per share, closing at $14.62 on July 17, 2012, on volume of over 4 million shares.On July 18, 2012, a report was published by the research firm Muddy Waters Research, entitled, “Initiating Coverage on EDU – Strong Sell.” In this report, the firm rated New Oriental a “Strong Sell because it is probable that EDU will have a significant restatement” and indicated that it was possible that its auditor would resign. On this news, shares of the Company declined $5.12 per share, closing at $9.50 per share on July 18, 2012, on volume of over 10 million shares. If you wish to serve as lead plaintiff, you must move the Court no later than September 21, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.