New Oriental Education and Technology Group Inc. : American Depositary Shares Securities Litigation
On or around 07/03/2019 (Court's order of dismissal)
Filing Date: December 15, 2016
According to the law firm press release, the lawsuit alleges throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) New Oriental engaged in college application fraud; and (2) as a result, Defendants’ statements about New Oriental’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. On December 2, 2016, Reuters reported that eight former and current New Oriental employees informed Reuters that New Oriental “engaged in college application fraud, including writing application essays and teacher recommendations, and falsifying high school transcripts.” On this news, shares of New Oriental fell $6.99 per share or over 14% from its previous closing price to close at $42.00 per share on December 2, 2016, damaging investors.
On March 30, 2017, the Court issued an Order appointing Lead Plaintiffs and Co-Lead Counsel. Lead Plaintiffs filed an amended Complaint on May 30. Defendants filed a Motion to Dismiss the amended Complaint on July 31. On July 3, 2019, the Court issued an Order granting Defendants' Motion to Dismiss.
Company & Securities Information
Defendant: New Oriental Education and Technology Group Inc.
Ticker Symbol: EDU
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Amy Chan, et al. v. New Oriental Education and Technology Group Inc., et al.