NEW YORK, Feb. 09, 2022 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired the American Depositary Receipts (“ADR’s”) of New Oriental Education & Technology Group Inc. ("New Oriental Education" or "the Company") (NYSE:EDU).
All investors who purchased the ADR’s of New Oriental Education & Technology Group Inc. and incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the ADR’s of New Oriental Education & Technology Group Inc., you may, no later than April 5, 2022, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the ADR’s of New Oriental Education & Technology Group Inc.
PLEASE CLICK HERE TO JOIN CASE
On April 25, 2021, media reports revealed that the government of the City of Beijing had fined four online education agencies, including the New Oriental subsidiary Koolearn, the maximum fine of 500,000 yuan 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 fell $2.77 per ADR, or 19.4%, over the following two trading sessions to close at $11.51 per ADR 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. New Oriental’s ADR price fell $1.77 per ADR, or 16%, over the following two trading sessions to close at $9.32 per ADR on June 3, 2021.
Subsequently, 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 fell $4.46 per ADR, or nearly 70%, over the following two trading sessions to close at $1.94 per ADR on July 26, 2021.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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