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Tarena International, Inc. Class Action Lawsuit - TEDU

Company Name
Tarena International, Inc.
Stock Symbol
TEDU
Class Period
August 16, 2016 to November 1, 2019
Motion Deadline
August 21, 2021
Court
Eastern District of New York
17 days left to seek lead plaintiff status

Case Summary

The Tarena International, Inc. class action lawsuit charges Tarena (NASDAQ:TEDU) and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Tarena publicly traded securities between August 16, 2016 and November 1, 2019, inclusive (the “Class Period”).  The Tarena class action lawsuit was commenced on June 22, 2021 in the Eastern District of New York and is captioned Qiu v. Tarena International, Inc., No. 21-cv-03502.

If you wish to serve as lead plaintiff of the Tarena class action lawsuit or have questions concerning your rights regarding the Tarena class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Tarena class action lawsuit must be filed with the court no later than August 23, 2021.

CASE ALLEGATIONS: Tarena provides professional education services including professional information technology (“IT”) training courses and non-IT training courses.  Tarena also offers K-12 education services in China.

The Tarena class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) certain Tarena employees were interfering with external audits of Tarena’s financial statements for certain periods; (ii) Tarena suffered from revenue and expense inaccuracies; (iii) Tarena engaged in business transactions with organizations owned, invested in, or controlled by Tarena employees or their family members, which in some instances were not properly disclosed by Tarena; (iv) consequently, Tarena’s financial statements from 2014 through the end of the Class Period were not accurate; and (v) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On April 30, 2019, Tarena filed a Form NT 20-F notification of inability to timely file a Form 20-F for the fiscal year ended December 31, 2018 with the U.S. Securities and Exchange (“SEC”) Commission.  Tarena stated that the delay in filing the Form 20-F was due, in part, to, “the independent audit committee of the registrant’s board of directors [] conducting a 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, the price of Tarena American Depository Shares (“ADSs”) fell.

Then, on May 17, 2019, Tarena filed a Form 6-K with the SEC announcing that it “received a notification letter from Nasdaq Listing Qualifications . . . stating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to its failure to timely file its Annual Report on Form 20-F for the year ended December 31, 2018.”  On this news, the price of Tarena ADSs fell an additional 4.8%.

Thereafter, on July 24, 2019, Tarena filed a Form 6-K with the SEC providing an update on the audit committee’s independent review of Tarena’s financial statements, stating in relevant part, “in addition to the financial results for 2018, [Tarena] also expects that its historical disclosure of its financial results and audited financial statements for its fiscal year ended December 31, 2017, as well as the financial results and audited financial statements for periods prior to 2017, may need to be restated and should not be relied upon, pending the completion of the Independent Audit Committee Review.”  On this news, the price of Tarena ADSs fell an additional 4.7%.

Finally, on November 1, 2019, Tarena filed a Form 6-K announcing the results of its independent investigation, revealing: “Revenue Inaccuracies,” “Expense Inaccuracies and Irregularities,” “Conflicts of Interest and Related Party Transactions,” and “Interference With External Audit Process.”  Tarena further disclosed that Tarena “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, the price of Tarena ADSs dropped an additional 9.4%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Tarena securities during the Class Period to seek appointment as lead plaintiff in the Tarena class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Tarena class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Tarena class action lawsuit.  An investor’s ability to share in any potential future recovery of the Tarena class action lawsuit is not dependent upon serving as lead plaintiff. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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