Teaching qualifications

Law Firm of Frank R. Cruz Announces Investigation of New Oriental Education & Technology Group Inc. (EDU) on Behalf of Investors

LOS ANGELES–(BUSINESS WIRE)–The Law Firms of Frank R. Cruz announces an investigation into New Oriental Education & Technology Group Inc. (“New Oriental” or the “Company”) (NYSE: EDU) on behalf of investors regarding the Company’s possible violations of federal securities laws.

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On May 12, 2021, media reported that the impending Chinese government crackdown on the online education industry would be more drastic than previously announced. Planned regulations included a ban on on-campus tutoring classes and weekend tutoring, as well as industry-wide fee limitations.

Following this news, New Oriental’s American Depository Stock (“ADS” or “Shares”) fell 20% to close at $11.51 per share on May 13, 2021.

Then, on June 1, 2021, Chinese regulators announced they had fined New Oriental and 14 other off-campus educational institutions for false advertising and fraud, including fabricating teacher qualifications, exaggerating of the effects of training and the production of user opinions. New Oriental was accused of rigging the teaching experience of 74% of teachers surveyed. New Oriental had also been accused of providing false pricing information, engaging in false advertising and pricing fraud, and failing to honor its contractual commitment to students.

On this news, New Oriental’s ADS price fell 16% to close at $9.32 per share on June 3, 2021, further hurting investors.

Then, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning for-profit teaching and tutoring companies. On July 25, 2021, New Oriental responded that compliance with the new regulations “would have a significant negative impact on its after-school tutoring services.”

On this news, shares of New Oriental fell 70% to close at $1.94 per ADS on July 26, 2021, further hurting investors.

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If you have purchased New Oriental securities, have information or want to know more about these claims, or have any questions regarding this announcement or your rights or interests in these matters, please contact Frank R. Cruz, Law Firms Lawyers of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067 at 310-914-5007, by email at [email protected], or visit our website at www.frankcruzlaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.

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