NEW YORK, Dec. 7, 2016 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces it is continuing to investigate potential securities claims on behalf of shareholders of New Oriental Education & Technology Group Inc. (NYSE: EDU) resulting from allegations that New Oriental may have issued materially misleading business information to the investing public.
On December 2, 2016, Reuters published an article revealing that New Oriental has been accused of engaging in college application fraud. The article stated that "[e]ight former and current New Oriental employees…told Reuters the firms have engaged in college application fraud, including writing application essays and teacher recommendations, and falsifying high school transcripts." Shortly thereafter on the same day, Reuters published an article announcing that in the wake of its earlier report detailing allegations of academic fraud at New Oriental, the American International Recruitment Council ("AIRC") stated that it "will investigate the company in response to the report", and the AIRC's president-elect called the allegations "highly concerning." On this news, shares of New Oriental fell $6.99 per share or over 14% to close at $42.00 per share on December 2, 2016.