NEW YORK, June 15, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Ambow Education Holding Ltd. ("Ambow" or the "Company") (NYSE: AMBO).
The investigation focuses on whether Ambow and its executives violated federal securities laws by failing to disclose that: (1) certain of the Ambow's distributors lacked a track record for making timely payment; (2) the collection of receivables from the Company's distributors was not reasonably assured; (3) the Company was improperly recognizing revenue on sales to these distributors; (4) the Company was improperly accounting for certain business acquisitions; and (5) the Company lacked adequate internal and financial controls.
On April 30, 2012, Ambow announced that it would be unable to timely file its Annual Report on Form 20-F with the Securities and Exchange Commission for the 2011 fiscal year (the "2011 Annual Report"). Thereafter, on May 16, 2012, Ambow disclosed that the Company was further delaying the filing of its 2011 Annual Report. As a result of this news, the Company's shares declined $0.99 per share, or 17.55%, to close at $4.65 per share on May 16, 2012.
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If you purchased Ambow securities between May 18, 2011 and May 16, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/AMBO. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org, email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Ambow's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP