RYB Education, Inc. (RYB) Accused of Subjecting Children to Unsafe Conditions
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1933 pursuant to the company’s September 2017 initial public offering (“IPO”), RYB Education, Inc. (RYB) offered 5.5 million American Depositary Shares (“ADSs”) at a price of $18.50, raising $90.1 million in net proceeds. RYB’s registration statement touted the company’s “high standards in selecting, certifying and training” its teaching staff and the “stringent” vetting process that each teaching candidate must complete before becoming an RYB teacher. However, RYB employed uncertified teachers and the company’s surveillance technology was not adequately implemented or monitored at several of its learning centers. On November 24, 2017, Reuters reported that Chinese police were investigating claims of sexual molestation and needle marks on children at an RYB kindergarten in Beijing. RYB’s ADS price plummeted on this news, and currently trades at 55% below the IPO price.
RYB Education, Inc. (RYB) Shareholders Have Legal Options
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