New Oriental Sued by U.S. Investors Over Stock Plunge
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New Oriental Education & Technology Group Inc., China’s largest private-education provider, was sued by investors in its U.S.-registered shares after the Securities and Exchange Commission began investigating the company.
The American depositary receipts fell 57 percent over two days after New Oriental said July 17 that the SEC was probing the consolidation of its units’ financial statements. The plunge capped nine consecutive trading days of declines, the ADRs’ longest losing streak since the Beijing-based company’s initial public offering in 2006.