NEW YORK, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed against RYB Education, Inc. ("RYB" or the "Company") (NYSE:RYB) on behalf of shareholders who purchased or otherwise acquired RYB's American Depositary Receipts ("ADRs") pursuant and/or traceable to RYB's Registration Statement and Prospectus, issued in connection with the Company's initial public offering on or about September 27, 2017 (the "IPO" or the "Offering"); and/or (2) on the open market between September 27, 2017 and November 22, 2017, both dates inclusive (the "Class Period").
Investors who have incurred losses in RYB Education, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the ADRs of RYB Education, Inc. and would like to assist with the litigation process as a lead plaintiff, you may, no later than January 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in RYB Education, Inc.
The filed Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
- RYB failed to establish safety policies to prevent sexual abuse from occurring at its schools;
- RYB's failure to remedy problems within its system exposed children to harm and unreasonable risk of harm while in the Company's care; and
- consequently, RYB securities traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On November 24, 2017, various news outlets reported that police had opened an investigation into RYB after numerous parents accused a RYB nursery of drugging and molesting their children. Beijing's education authority confirmed the police investigation in a statement.
According to China's leading newspaper, Xinhua News Agency, RYB has suspended multiple teachers at RYB Education New World after kindergarten students were "reportedly sexually molested, pierced by needles, given unidentified pills," and forced to undress and locked in a dark room. Parents reported that at least eight children have been abused at the school and that the children had given similar accounts with respect to their abuse. Following this news, RYB's ADR price fell $10.28 per share, or over 38% from its previous closing price, to close at $16.45 per share on November 24, 2017.
On the following day, several news outlets reported that Chinese police had detained teachers in connection with its RYB's child abuse inquiry. According to police reports, one of the teachers was arrested after needle wounds were found on at least eight children aged 2 to 6 years at the kindergarten. In a statement issued later that day, RYB announced it had fired the detained teachers, as well as the head of one of its kindergartens.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
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Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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