SAN FRANCISCO, April 09, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in TAL Education Group (NYSE: TAL) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations.
Relevant Holding Period: Before Apr. 8, 2020
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844-916-0895
TAL Education Group (TAL) Investigation:
The investigation focuses on the accuracy of TAL’s reported financial results and effectiveness of its internal controls and procedures over financial reporting.
TAL is a leading K-12 after-school tutoring services provider in China. Over the past two years, TAL has been dogged by accusations of cooking its books. One such detractor includes research firm Muddy Waters, which published several scathing reports about TAL beginning in June 2018, calling the Company a fraud and claiming TAL had overstated net income by more than 43% over the past two fiscal years.
On Apr. 7, 2020, after market hours, TAL’s financial reporting came into the spotlight again, when the company announced that it had 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. The Company stated that it suspects that the employee in question conspired with external vendors to wrongly inflate “Light Class” sales by forging contracts and other documentations. TAL disclosed that after reporting this information to the authorities, the employee had been taken into police custody.
On this news, the price of TAL shares dropped sharply over the next trading day.
“We’re focused on investors’ losses and determining the true scope of this already admitted financial fraud at TAL,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding TAL should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TAL@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895