NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tal Education Group (“Tal” or the “Company”) (NYSE: TAL) of the August 17, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Tal stock or options between April 26, 2018 and June 13, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/TAL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Tal securities between April 26, 2018 and June 13, 2018 (the “Class Period”). The case, Lea v. TAL Education Group, et al., No. 18-cv-05480 was filed on June 18, 2018 and has been assigned to Judge Robert W. Sweet.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company overstated its net income; (2) that the Company's net income was deteriorating; and (3) that, as a result of the foregoing, Tal executives’ statements about Tal’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
Specifically, on June 13, 2018, Carson Block, founder of Muddy Waters Research, issued a report accusing the Company of issuing fraudulent profit figures by overstating income, net income margin and other essential accounting figures. In his report, Carson Block estimated that between Fiscal Year 2016 and through Fiscal Year 2018, Tal overstated its net income by at least 43.6%. Carson Block also calculated that, in the same time frame, Tal had inflated its pre-tax profits by $153.2 million, or 28.4%.
On this news, the Tal’s stock price dropped, causing harm to investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Tal Education Group’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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