SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a class action has been filed on behalf of all purchasers of Tarena International, Inc. (NASDAQ: TEDU) who acquired Tarena securities between April 16, 2016 and November 1, 2019. The complaint asserts claims under the Securities Exchange Act of 1934. Tarena provides professional education services in China.
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Tarena International, Inc. (TEDU) Made Misstatements Regarding its Accounting Practices
According to the complaint, during the class period, defendants made false and misleading statements and/or failed to disclose that: (1) certain employees were interfering with external audits of the Company's financial statements for certain periods; (2) the Company suffered from revenue and expense inaccuracies; (3) the Company engaged in business transactions with organizations owned, invested in or controlled by Company employees or their family members, which were not properly disclosed; (4) as a result, the Company's financial statements from 2014 through the end of the class period were inaccurate.
On April 30, 2019, Tarena 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 delay was due, in part, to issues related to "revenue recognition." On May 17, 2019, Tarena filed a Form 6-K with the SEC announcing that it "received a notification letter from Nasdaq Listing Qualifications […] stating the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to its failure to timely file its Annual Report on Form 20-F for the year ended December 31, 2018." On this news, the price of Tarena's ADSs fell 4.8% to close at $3.73 on May 19, 2019.
On July 24, 2019, Tarena filed an update on the audit committee's independent review of the Company's financial statements, indicating that "in addition to the financial results for 2018, the Registrant also expects that its historical disclosure of its financial results and audited financial statements for its fiscal year ended December 31, 2017, as well as the financial results and audited financial statements for periods prior to 2017, may need to be restated and should not be relied upon, pending completion of the Independent Audit Committee Review." On this news, the price of Tarena's ADSs fell 4.7% to close at $1.63 per share on July 25, 2019. The Company announced the results of its independent investigation on November 1, 2019. Its findings included expense inaccuracies and irregularities, conflicts of interest, and interference with external audit processes, among other things. On this news, the price of Tarena ADSs dropped 9.4% to open on November 4, 2019, at $0.76.
If you purchased shares of Tarena International, Inc. (TEDU) between April 16, 2016 and November 1, 2019, you have until August 23, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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