SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) announces that a securities class action case was filed on behalf of purchasers of TAL Education Group (NYSE:TAL) securities between April 26, 2018 and June 13, 2018 (the “Class Period”). This action was filed in the U.S. District Court for the Southern District of New York and is captioned Lea v. TAL Education Group, No. 1:18-cv-05480.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased TAL securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Mary Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Robbins Geller has not filed a complaint in this action. Lead plaintiff motions must be filed with the court no later than 60 days from June 18, 2018.
The complaint charges TAL and certain of its officers and directors with violations of the Securities Exchange Act of 1934 for issuing materially false and misleading statements and/or failing to disclose adverse facts about the Company’s business, operations and prospects, including that TAL had overstated its net income and its net income was deteriorating. As a result of defendants’ false statements and/or omissions, TAL securities traded at artificially inflated prices of as high as $46 per share during the Class Period.
On June 13, 2018, Carson Block issued a report accusing the Company of issuing fraudulent profit figures by overstating its net income, net income margin and other essential accounting figures. The Carson Block report estimated that during the period from fiscal 2016 through fiscal 2018, TAL had “overstated net income by at least 43.6%,” and “that TAL’s cumulative net income margin during this period was only 8.8% (versus 12.4% reported)” and its fiscal 2018 “net income margin was only 10.4% (versus 11.6% reported).” According to the report, “TAL’s margins have deteriorated more than ha[s] been reported,” and “[t]o cover this up, the company has resorted to fraud.” On this news, the price of TAL stock declined over 15% to close at $38.41 per share on June 13, 2018.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.