July 17, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in New Oriental Education & Tech Grp (ADR) (NYSE:EDU) shares over potential securities laws violations by certain officers and directors at New Oriental Education & Tech in connection with 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 the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about New Oriental Educations business, its prospects and its operations were potentially materially false and misleading at the time they were made.
New Oriental Education & Tech Grp (ADR) (NYSE:EDU) reported that its Total Revenue rose from $201million for a 12months period ending on May 31, 2008 to $557.87million for the 12months period ending on May 31, 2011 and its Net Income increased over the same time periods from $49.01million to $101.77million.

Then on July 17, 2012, New Oriental Education & Tech Grp (ADR) (NYSE:EDU) reported its unaudited financial results for the fiscal quarter and fiscal year ended May 31, 2012.
New Oriental Education & Tech Grp disclosed that the U.S. Securities and Exchange Commission (SEC) has launched a formal investigation into New Oriental Education & Techs accounting practices. The SEC is investigating 'whether there is a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., a variable interest entity of the Company, and its wholly-owned subsidiaries, into the Company's consolidated financial statements,' New Oriental Education said in its July 17, 2012 statement.

Shares of New Oriental Education & Tech Grp (ADR) (NYSE:EDU) dropped from $22.26 per share on July 16, 2012 to $14.62 per share on July 17, 2012.