NEW YORK--(BUSINESS WIRE)--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 (Ticker: TAL) resulting from allegations that TAL may have issued materially misleading business information to the investing public.
TAL is a leading K-12 after-school tutoring services provider in China.
On April 7, TAL announced that there was certain employee wrongdoing discovered in the Company’s routine internal auditing process. 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. Upon such discovery, TAL immediately reported to the local police. The employee has been taken into custody by the local police.
Based upon the Company's routine internal audit, the Company suspects that the employee of question conspired with external vendors to wrongly inflate "Light Class" sales by forging contracts and other documentations. 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.
Pre-market today, TAL stock is trading 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 dschwartz@labaton.com or recover@labaton.com.
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