TAL Education Group (TAL) Accused of Overstating Its Net Income
According to the complaint, TAL Education Group (TAL) announced its fourth quarter 2018 and fiscal year (“FY”) 2018 financial results on April 26, 2018, but failed to inform investors that TAL’s net income was deteriorating. On June 13, 2018, Carson Block, founder of Muddy Waters Research, accused the company of issuing fraudulent profit figures by overstating net income, net income margin, and other essential accounting figures. Block said that TAL resorted to fraud to cover up the company’s deteriorating profit margins, noting that TAL’s pre-tax profits from FY 2016 through FY 2018 were inflated by up to $153.2 million, or 28.4%. On this news, TAL’s stock fell nearly 10% to close at $41.11 per share on June 13, 2018.
TAL Education Group (TAL) Shareholders Have Legal Options
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