Tal Education is a multibillion dollar provider of K-12 after school tutoring services in core academic subjects. Lowey Dannenberg’s investigation concerns whether Tal Education and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On April 7, 2020, after close of trading, TAL Education announced that it had uncovered certain employee wrongdoing during the Company’s routine internal auditing process. More specifically, Tal Education 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.” Upon such discovery, Tal Education reported the wrongdoing to the local police. In the same press release, Tal Education further disclosed that the Company’s internal audit revealed that the employee at issue conspired with an external vendor to fraudulently inflate “Light Class” sales for forging contracts and other documentation. For the fiscal year 2020 ended February 29, 2020, “Light Class” sales accounted for approximately 3% to 4% of the Company’s total estimated revenues. On this news, TAL’s share tumbled $3.76 per share, or 6.74%, to close at $52.06 per share on April 8, 2020, severely damaging investors.
If you are a shareholder of Tal Education who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or email@example.com to learn more about this investigation or to discuss your options.
Whistleblowers: Persons with non-public information regarding Tal Education 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.