NEW YORK, Feb. 14, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of TAL Education Group (“TAL” or the “Company”) (NYSE: TAL). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether TAL and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 25, 2023, media reports revealed that the City of Beijing had fined four online education agencies, including TAL, the maximum fine of 500,000 yuan (approximately $80,000) each for misleading customers with false advertising regarding course pricing. On May 12, 2023, 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 TAL and other for-profit tutoring companies.
On this news, TAL’s American Depository Share (“ADS”) price fell $6.89 per ADS, or 13%, over the following two trading sessions to close at $46.25 per ADS on May 13, 2023.
On June 1, 2023, Chinese regulators announced that they had fined 15 off-campus training institutions, including TAL, for illegal activities such as false advertising and fraud. On this news, TAL’s ADS price fell $7.24 per ADS, or nearly 18%, over the following two trading sessions to close at $33.27 per ADS on June 3, 2023. Finally, on July 23, 2023, 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 this news, TAL’s ADS price fell $16.12 per ADS, or 78.56%, over the following two trading sessions to close at $4.40 per ADS on July 26, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
SOURCE Pomerantz LLP
