LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of New Oriental Education & Technology Group Inc. (“New Oriental” or the “Company”) (NYSE: EDU) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On May 12, 2021, media reported that the impending crackdown by the Chinese government on the online education industry would be more drastic than previously reported. Anticipated regulations included banning on-campus tutoring classes and weekend tutoring, as well as industry-wide fee limitations.
On this news, New Oriental’s American Depositary Shares (“ADSs” or “shares”) fell 20% to close at $11.51 per share on May 13, 2021.
Then, on June 1, 2021, Chinese regulators announced that they had fined New Oriental and 14 other off-campus training institutions for false advertisement and fraud, including fabricating teacher qualifications, exaggerating the effects of training, and fabricating user reviews. New Oriental was accused of faking the teaching experience of 74% of teachers surveyed. New Oriental had also been accused of providing false pricing information, engaging in false publicity and price fraud, and failing to honor its contractual commitment to students.
On this news, the price of New Oriental’s ADSs dropped 16% to close at $9.32 per share on June 3, 2021, thereby injuring investors further.
Then, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning for-profit teaching and tutoring companies. On July 25, 2021, New Oriental responded that complying with the new regulations would “have a material adverse impact on its after-school tutoring services.”
On this news, New Oriental’s shares fell 70% to close at $1.94 per ADS on July 26, 2021, thereby injuring investors further.
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If you purchased New Oriental securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com
