TAL ALERT: Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against TAL Education Group, Announces Opportunity for Investors Suffering Substantial Losses to Lead Case

SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit seeking to represent purchasers of American Depository Shares (“ADS”) of TAL Education Group (NYSE: TAL) between April 26, 2018 and July 22, 2021, both dates inclusive (the “Class Period”) and accusing TAL Education and certain of its senior executives of violating the Securities Exchange Act of 1934. TAL Education the class action was filed on February 4, 2022 in the Southern District of New York and is captioned Sun vs. TAL Education Groupno. 22-cv-01015.

The plaintiff is represented by Robbins Geller, who extensive experience in pursuing investor class actions, including actions involving financial fraud. You can view a copy of the complaint by clicking here.

If you have suffered significant losses and wish to act as the lead plaintiff of the TAL Education class action, please provide your information by clicking here. You can also contact the lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing jsanchez@rgrdlaw.com. Principal Applicant’s Requests for TAL Education the class action must be filed with the court no later than April 5, 2022.

CASE ALLEGATIONS: TAL Education provides K-12 after school tutoring services in China.

the TAL Education The Class Action alleges that, throughout the Class Period, Defendants made false and misleading statements and failed to disclose that: (i) TAL Education’s revenue and operational growth were the result of misleading marketing and illicit business practices that flouted laws, regulations, and policies, and put TAL Education at extreme risk of more drastic measures being imposed on TAL Education; (ii) TAL Education had engaged in deceptive and fraudulent advertising practices, including providing false and misleading information about discounts intended to hide the true cost of TAL Education programs for its customers, creating false reviews clients designed to fraudulently attract new clients to TAL Education programs, misrepresenting teacher qualifications and course qualities, and marketing rigged promotional events; (iii) TAL Education had challenged Chinese policies aimed at easing the burden of tutoring services on students and their families, including imposing heavy advances and recurring debt repayments on course enrollees, by offering courses designed to give wealthy students unfair advantages, by taking classes outside authorized tutoring hours and by tying for-profit classes to government-mandated education; (iv) as a result, TAL Education was subject to an undisclosed tail risk of adverse enforcement actions, regulatory fines and penalties, and the imposition of new rules and regulations adverse to the business and financial interests of TAL Education ; and (v) therefore, TAL Education’s historic growth was not sustainable or the result of legitimate business tactics as depicted, and defendants’ positive statements about TAL Education’s business, operations and prospects were materially false. and misleading and lacked a reasonable factual basis.

From March 4, 2021 to March 11, 2021, China held its annual parliamentary meetings in “two sessions”. Media said attendees of the ongoing Two Sessions conference had proposed “tougher regulations” to curb the online education industry, such as regulations to improve the quality of teachers, limit scams fees, to reduce market “abuse” by big players like TAL Education, and to reduce the stress that for-profit tutoring companies had placed on students in China’s education system. As news of the government’s focus on the after-school tutoring industry spread, the price of TAL Education ADS began to drop from $76.04 at market close on March 5. 2021 to $56.31 as of April 1, 2021, a decrease of 26%.

Then, on May 12, 2021, news reports revealed that the impending government crackdown on for-profit tutoring companies in China would be far more drastic and far-reaching than previously publicly known. Sources said the planned rules would include measures such as banning on-campus tutoring classes, providing tutoring services during weekend hours and imposing company-wide fee caps. industry. On this news, the price of TAL Education ADS fell 13% over a two-day period.

Subsequently, on June 1, 2021, Chinese regulators announced that they had fined 15 off-campus educational institutions, including TAL Education, for illegal activities such as false advertising and fraud. Among the violations committed by the 15 offenders are allegedly fabricating teacher qualifications, exaggerating the effects of training, and fabricating user reviews. Regulators gave examples of how TAL Education subsidiary Xueersi published fake parent user reviews in Beijing and Shanghai. Offending companies, including TAL Education, were hit with maximum penalties for their illegal business practices, totaling 36.5 million yuan ($5.73 million). Officials said the crackdown on the for-profit tutoring industry grew out of two-session parliamentary meetings earlier in the year and followed a flood of complaints against bad actors in the industry, including 155,000 complaints and reports for education and training services received by the authorities. in 2020 alone and over 47,000 complaints and similar reports received by authorities in the first quarter of 2021. recurring debt payments in violation of Chinese law; (ii) offered courses that gave students unfair advantages in violation of Chinese government policies; (iii) engaged in illegal bait and switch tactics; (iv) misrepresentation of teachers’ qualifications and course qualities; (v) mishandled user data; and (vi) rigged promotional events to defraud consumers. At this news, the price of TAL Education ADS fell about 18% over a two-day period.

Finally, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning companies that teach the school curriculum from making a profit, raising capital, or going public. This drastic measure effectively ended any potential growth of the for-profit tutoring industry in China. On this news, the price of TAL Education ADS fell from $20.52 at market close on July 22, 2021, to just $4.40 at market close on July 26, 2021, a drop of nearly 79%. %.

THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased TAL Education ADSs during the class action period to seek appointment as a lead plaintiff in the TAL Education class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the TAL Education class action. The main plaintiff can select a law firm of his choice to plead TAL Education class action. An investor’s ability to participate in any potential future upturn in the TAL Education the class action does not depend on the status of principal plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller’s lawyers secured many of the largest shareholder recoveries in history, including the largest ever securities class action lawsuit – $7.2 billion – in In re Enron Corp. Dry. Dispute. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiff firm. . Please visit http://www.rgrdlaw.com for more information.

Lawyer advertisement.

Past results do not guarantee future results.

Services can be performed by attorneys in any of our offices.




Back To Top