NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Tarena International, Inc. (NASDAQ: TEDU) in the United States District Court for the Eastern District of New York on behalf of those who purchased or otherwise acquired Tarena publicly traded securities between August 16, 2016 and November 1, 2019, inclusive (the “Class Period”). Investors have until August 23, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On April 30, 2019, the Company filed a Form NT 20-F Notification of inability to timely file a Form 20-F for the fiscal year ended December 31, 2018 with the SEC. The Company stated the delay in filing the Form 20-F was due, in part, to, “the independent audit committee of the registrant’s board of directors [. . .] conducting a review of certain issues identified during the course of the audit of the registrant’s financial statements for the year ended December 31, 2018, including issues related to the registrant's revenue recognition.”
On this news, the price of Tarena ADSs fell 1% to close at $5.02 per ADS on May 1, 2019, damaging investors.
Then on November 1, 2019, Tarena announced the results of its independent investigation. Tarena revealed issues surrounding revenue and expense inaccuracies, conflicts of interest and related party transactions, and interference with the external audit processes which meant that financial statements from 2014 through 2018 could not be relied upon and would have to be restated.
On this news, the price of Tarena ADSs dropped 9% to open on November 4, 2019, the next trading day, at $0.76, further damaging investors.
It is alleged in this complaint, Tarena throughout the Class Period made misleading and/or false statements and/or failed to disclose that: (1) certain employees had interfered with external audits of Tarena’s financial statements for certain periods; (2) Tarena suffered from expense and revenue inaccuracies; (3) Tarena engaged in business transactions with organizations that were owned, invested in or controlled by employees of Tarena or their family members, in some instances were not properly disclosed by Tarena; (4) Tarena’s financial statements from 2014 through the end of Class Period were not accurate, as a result of the foregoing; and (5) Tarena’s statements about its business, operations, and prospects, were materially misleading and false and/or lacked a reasonable basis at all relevant times, as a result. The lawsuit claims that investors suffered damages when the true details entered the market.
If you purchased or otherwise acquired Tarena shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.