December 5, 2016 (Shareholders Foundation) - An investigation on behalf of investors of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) shares over potential securities laws violations by New Oriental Education & Tech Group and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) concerning whether a series of statements by New Oriental Education & Tech Grp (ADR) (NYSE:EDU regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

New Oriental Education & Tech Grp reported that its Total Revenue rose from over $1.24 billion for the 12 months period that ended on May 31, 2015 to over $1.47 billion for the 12 months period that ended on May 31, 2016 and that its Net Income for those respective time periods increased from $193.01 million to $224.88 million.

On December 2, 2016, an article was published that alleged that New Oriental Education & Tech Grp has been accused of engaging in college application fraud. The article stated that [e]ight former and current New Oriental employeestold 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 AIRCs president-elect called the allegations highly concerning.

Shares of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) dropped on December 2, 2016, to as low as $37.16 per share.

On December 5, 2016, NYSE:EDU shares closed at $73.90 per share.