SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of TAL Education Group (NYSE: TAL) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 26, 2018 and June 13, 2018. TAL, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/tal-education-group
TAL Accused of Overstating Its Net Income
According to the complaint, TAL announced its fourth quarter 2018 and fiscal year ("FY") 2018 financial results on April 26, 2018, but failed to inform investors that TAL's net income was deteriorating. On June 13, 2018, Carson Block, founder of Muddy Waters Research, accused the company of issuing fraudulent profit figures by overstating net income, net income margin, and other essential accounting figures. Block said that TAL resorted to fraud to cover up the company's deteriorating profit margins, noting that TAL's pre-tax profits from FY 2016 through FY 2018 were inflated by up to $153.2 million, or 28.4%. On this news, TAL's stock fell nearly 10% to close at $41.11 per share on June 13, 2018.
TAL Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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