New York, New York--(Newsfile Corp. - February 11, 2022) - Pomerantz LLP is investigating claims on behalf of investors of New Oriental Education and Technology Group Inc. ("New Oriental" or the "Company") (NYSE: EDU). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether New Oriental and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 25, 2021, media reports revealed that the City of Beijing had fined four online education agencies, including the New Oriental subsidiary Koolearn, the maximum fine of 500,000 yuan (approximately $80,000) each for misleading customers with false advertising regarding course pricing. On May 12, 2021, news reports revealed that an impending crackdown by the Chinese government on the private tutoring sector would be further reaching and more drastic than previously publicly known, including that regulators had already taken adverse actions against New Oriental and other for-profit tutoring companies.
On this news, New Oriental's American Depository Share ("ADS") price fell $2.77 per ADS, or 19.4%, over the following two trading sessions to close at $11.51 per ADS on May 13, 2021.
On June 1, 2021, Chinese regulators announced that they had fined 15 off-campus training institutions, including New Oriental, for illegal activities such as false advertising and fraud.
On this news, New Oriental's ADS price fell $1.77 per ADS, or 16%, over the following two trading sessions to close at $9.32 per ADS on June 3, 2021.
Then, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning companies that teach the school curriculum from making profits, raising capital or going public, effectively ending any potential growth in the for-profit tutoring sector in China. On July 25, 2021, New Oriental published an "update" on the new regulations, which stated that the Company will "comply with relevant rules and regulations when providing educational services" and "expects such measures to have material adverse impact on its after-school tutoring services related to academic subjects in China's compulsory education system."
On this news, New Oriental's ADS price fell $4.46 per ADS, or nearly 70%, over the following two trading sessions to close at $1.94 per ADS on July 26, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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