NEW YORK, NY / ACCESSWIRE / April 24, 2020 / Labaton Sucharow LLP, a leading and award winning investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of TAL Education Group (TAL) resulting from allegations that TAL may have issued materially misleading business information to the investing public.
TAL provides K-12 after-school tutoring services in the People's Republic of China. The company offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese.
On April 7, 2020, post-market, TAL announced that it had uncovered certain employee wrongdoing during the Company's routine internal auditing process. Specifically, TAL discovered irregularities and violations of the Company's business conduct and internal control policies by an employee in the Company's newly introduced "Light Class" business, after which TAL immediately reported the wrongdoing to the local police, and the employee was taken into custody. Based on the Company's routine internal audit, the Company suspects the employee at issue of conspiring with external vendors to inflate "Light Class" sales by forging contracts and other documentation. For the fiscal year 2020 ended February 29, 2020, "Light Class" sales accounted for approximately 3% to 4% of the Company's total estimated revenues. On this news, TAL's share price fell $3.76 per share, or 6.74%, to close at $52.06 per share on April 8, 2020, damaging investors.
On this news TAL stock traded down nearly 10%.
If you are a shareholder or option holder that suffered losses in TAL, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at firstname.lastname@example.org.
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SOURCE: Labaton Sucharow LLP
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