The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of RYB Education, Inc. (NYSE: RYB) who purchased American Depositary Shares pursuant to the September 27, 2017 Initial Public Offering or between September 27, 2017 and November 22, 2017. The action, which was filed in the USDC for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that (i) RYB failed to establish safety policies to prevent sexual abuse from occurring at its schools; (ii) 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 (iii) as a result of the foregoing, RYB securities traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On November 24, 2017, media outlets announced that parents had accused a RYB nursery of drugging and abusing children. The same day, RYB issued a press release providing an “update on allegations of improper conduct” stating that a police investigation was ongoing. Then on November 27, 2017, RYB announced that one “teacher at the RYB-operated kindergarten in question was detained as a criminal suspect for maltreatment of children in the facility, and the police investigation is continuing.” RYB further stated that it would dismiss the accused teacher, effective immediately.
Shareholders have until January 26, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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