NEW YORK, June 30, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of Tarena International, Inc. (“Tarena” or the “Company”) (NASDAQ: TEDU). If you are a shareholder of Tarena with more than $100,000 in losses, you should contact the Firm.
On April 30, 2019, Tarena International Inc. (“Tarena” or the “Company”) revealed that it could not timely file its fiscal 2018 annual report due to an ongoing “review of certain issues identified during the course of the audit of the registrant’s financial statements for the year ended December 31, 2018, including issues related to the registrant’s revenue recognition.” On this news, Tarena’s American Depository Shares (“ADSs”) price fell 1.2%, to close at $5.02 per ADS on May 1, 2019, thereby damaging investors.
On May 17, 2019, the Company disclosed that it was notified Tarena was not in compliance with NASDAQ listing rules due to the failure to timely file its 2018 annual report. On this news, Tarena’s ADSs fell 4.8%, to close at $3.73 per ADS on May 20, 2019, thereby damaging investors.
On July 24, 2019, Tarena disclosed that it expected that fiscal 2017 and prior periods “may need to be restated and should not be relied upon, pending the completion of the Independent Audit Committee Review.” On this news, Tarena’s ADSs fell 4.7%, to close at $1.63 per ADS on July 25, 2019, thereby damaging investors.
Finally, on November 1, 2019, Tarena announced the results of its investigation, including a list of revenue inaccuracies for fiscal years 2014 through 2018, expense inaccuracies and irregularities, and undisclosed related party transactions. Tarena further disclosed that it “anticipates that the total amount of revenue misstatement between fiscal years 2014 through 2018 to be less than RMB900 million, representing approximately 11.5% of the total revenue previously reported by the Company for such period.” On this news, Tarena’s ADSs dropped 9.4%, to open on November 4, 2019, the next trading day, at $0.76, thereby damaging investors further.
A securities class action has been filed against Tarena on behalf of shareholders that purchased Tarena shares between August 16, 2016 through November 1, 2019. This case has been filed in the U.S. District Court for the Eastern District of New York.
The Complaint alleges that Defendants made misleading and/or false statements and/or failed to disclose that: (1) certain employees had interfered with external audits of Tarena’s financial statements for certain periods; (2) Tarena suffered from expense and revenue inaccuracies; (3) Tarena engaged in business transactions with organizations that were owned, invested in or controlled by employees of Tarena or their family members, in some instances were not properly disclosed by Tarena; (4) Tarena’s financial statements from 2014 through the end of Class Period were not accurate, as a result of the foregoing; and (5) Tarena’s statements about its business, operations, and prospects, were materially misleading and false and/or lacked a reasonable basis at all relevant times, as a result. The lawsuit claims that investors suffered damages when the true details entered the market.
If you are a shareholder of Tarena who purchased Tarena securities between August 16, 2016 and November 1, 2019, you have until August 23, 2021, to ask the Court to appoint you as Lead Plaintiff for the class. To participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at investigations@lowey.com. For more information, visit our website at https://lowey.com/cases/tarena-international-inc/.
Whistleblowers: Persons with non-public information regarding Tarena should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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Tel: (914) 733-7256
Email: investigations@lowey.com