RADNOR, Pa.--(BUSINESS WIRE)--Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against TAL Education Group (NYSE: TAL) (“TAL” or the “Company”) on behalf of purchasers of the Company’s securities between April 26, 2018 and June 13, 2018, inclusive (the “Class Period”).
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.
The shareholder class action 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.
IMPORTANT DEADLINE: Investors who purchased TAL securities during the Class Period may, no later than August 17, 2018, seek to be appointed as a lead plaintiff representative of the investor class. TAL investors are encouraged to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740, or via email at firstname.lastname@example.org, to discuss their important legal rights and options with respect to this action. Investors may also submit their information to the firm online at http://kaskelalaw.com/case/tal-education-group/.