NEW YORK, Jan. 17, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed
against RYB Education, Inc. (“RYB” or the “Company”) (NYSE:RYB) and certain of its officers. The class action, filed in
United States District Court, for the Southern District of New York, and docketed under 17-cv-09261, is on behalf of a class
consisting of all persons other than defendants who purchased or otherwise acquired RYB’s American Depositary Receipts (“ADRs”):
(1) pursuant and/or traceable to RYB’s false and misleading Registration Statement and Prospectus, issued in connection with the
Company’s initial public offering on or about September 27, 2017 (the “IPO” or the “Offering”); and/or (2) on the open market
between September 27, 2017 and November 22, 2017, both dates inclusive (the “Class Period”), seeking to recover damages caused by
defendants’ violations of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange
Act”).
If you are a shareholder who purchased RYB securities between September 27, 2017, and November 22, 2017, both
dates inclusive, you have until January 26, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of
the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address, telephone number, and amount of shares purchased.
[Click here to join this class action]
RYB Education, Inc. offers educational services. The Company operates kindergarten and pre-schools. RYB
Education provides training in a variety of subjects and languages, teacher recruitment, guidance, innovative learning, development
of children, rating systems, parents consulting, and other services.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading
statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (i) RYB failed to establish safety policies to prevent sexual abuse
from occurring at its schools; (ii) RYB’s failure to remedy problems within its system exposed children to harm and unreasonable
risk of harm while in the Company’s care; and (iii) as a result of the foregoing, RYB securities traded at artificially inflated
prices during the Class Period, and class members suffered significant losses and damages.
On November 24, 2017, various news outlets reported that police have opened an investigation into RYB after
numerous parents accused a RYB nursery of drugging and molesting their children. Beijing’s education authority confirmed the police
investigation in a statement. According to China’s leading newspaper Xinhua News Agency, RYB has suspended multiple
teachers at RYB Education New World after kindergarten students were “reportedly sexually molested, pierced by needles, given
unidentified pills,” and forced to undress and locked in a dark room. Parents reported that at least eight children have been
abused at the school and that the children had given similar accounts with respect to their abuse.
On this news, RYB’s ADR price fell $10.28 per share, or over 38% from its previous closing price, to close at
$16.45 per share on November 24, 2017.
On the following day, several news outlets reported that Chinese police had detained teachers in connection with
its RYB’s child abuse inquiry. According to police reports, one of the teachers was arrested after needle wounds were found
on at least eight children aged 2 to 6 years at the kindergarten. In a statement issued later that day, RYB announced it had
fired the detained teachers, as well as the head of one of its kindergartens.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz,
known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80
years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
