NEW YORK, March 03, 2022 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky LLP is investigating claims on behalf of investors of First High-School Education Group Co., Ltd. (“First High-School Group” or the “Company”) (NYSE: FHS). The investigation concerns whether FHS and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
If you would like to discuss this class action lawsuit or obtain more information about your rights, please contact Abraham, Fruchter & Twersky, LLP by contacting Sean M. Handron-O’Brien at SHandronobrien@aftlaw.com or by calling (212) 634-0626.
First High-School Education Group operates private high schools in Western China. On or around March 11, 2021, First High-School Education Group conducted its initial public offering (the “IPO”), issuing 7.5 million American depository shares (“ADSs”) priced at $10.00 per ADS.
In the week before the IPO, March 4, 2021 through March 11, 2021, China held its annual “Two Sessions” parliamentary meetings, at which China government leaders had proposed stringent regulations governing the for-profit tutoring industry in China. On July 23, 2021, China unveiled further regulatory restrictions for the education sector in China, banning companies that teach the school curriculum from making profits, raising capital or going public.
Then, on September 28, 2021, First High-School Education Group announced its first half of 2021 unaudited financial results, including, among other results, gross profit of RMB62.3 million (US$9.6 million), a decrease of 3.6% from RMB64.6 million in the first half of 2020; a net loss of RMB3.8 million (US$0.6 million), compared to a net income of RMB31.9 million in the first half of 2020.
On February 28, 2022, First High-School Education Group ADSs closed at a price of just $1.79, or 82% below the price at which the Company’s ADSs were sold to investors in the IPO.
Abraham, Fruchter & Twersky, LLP is a law firm based in New York and maintaining an office in California. The firm’s attorneys have extensive experience litigating on behalf of shareholders in class action litigations involving corporate misconduct and has been ranked as a leading plaintiffs’ securities litigation firm in the 2020 survey by ISS Securities Class Action Services. Please visit www.aftlaw.com for more information.
Contact Information:
Sean M. Handron-O’Brien
Abraham, Fruchter & Twersky LLP
Phone: (212) 634-0626
Email: SHandronobrien@aftlaw.com
