RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased TAL Education Group (“TAL” or the “Company”) (NYSE: TAL) publicly traded securities between April 26, 2018 and June 13, 2018, inclusive (the “Class Period”).
TAL shareholders may, no later than August 18, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of TAL and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
TAL, through its subsidiaries, provides K-12 after-school tutoring services in the People’s Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese.
The Complaint alleges that TAL and certain other defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors the following material adverse facts: (i) that the Company overstated its net income; (ii) that the Company’s net income was deteriorating; and (iii) that, as a result of the foregoing, the defendants’ statements about TAL’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis. The complaint further alleges that investors purchased TAL’s securities at artificially inflated prices during the Class Period and sustained significant investment losses as a result thereof.
On June 13, 2018, Muddy Waters issued a report entitled “TAL Education: A Real Business with Fake Financials,” asserting that TAL “has been fraudulently overstating its profits since at least FY2016.” Citing an extensive review of Chinese government documents, site visits, and numerous interviews, the report further asserted that “TAL combines the old school China fraud playbook of simply penciling in more favorable numbers with the more sophisticated asset parking fraud of Enron.”
Following the publication of the Muddy Waters report, TAL’s shares declined $4.54 per share, or 10%, to close on June 13, 2018 at $41.11, on heavy trading volume.
If you are a member of the class, you may, no later than August 18, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.