Ambow Education Holding Ltd (ADR) (NYSE:AMBO) Investor Files Class Action Lawsuit over Alleged Securities Laws Violations
June 11, 2012 (Shareholders Foundation) -- An investor in NYSE:AMBO shares filed a lawsuit in the U.S. District Court for the Central District of California against Ambow Education Holding Ltd over alleged Violations of Federal Securities Laws in connection with certain statements.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased the American Depositary Shares (“ADS”) of Ambow Education Holding Ltd. (NYSE:AMBO) between May 18, 2011 and May 16, 2012, that Ambow Education Holding Ltd and certain of its executive officers violated federal securities laws by issuing allegedly false and/or misleading statements, as well as allegedly failing to disclose material adverse facts about Ambow Education Holding’s business, operations and prospects.
Ambow Education Holding Ltd. reported that its annual Revenue rose from $489.94million in 2008 to $1.66billion in 2011. However its Net Income fell from $216.03million in 2010 to $21.18million in 2011.
Shares of Ambow Education Holding Ltd (ADR) (NYSE:AMBO) rose in the end of December 2010 to as high as $13.92 per share.
Since then NYSE:AMBO shares lost significantly value.
Then on April 30, 2012, Ambow Education Holding Ltd announced that it would be unable to timely file its Annual Report on Form 20-F with the SEC for the 2011 fiscal year. Thereafter, on May 16, 2012, Ambow Education Holding Ltd disclosed that the Company was further delaying the filing of its 2011 Annual Report and that the Company had identified certain preliminary adjustments to its previously issued 2011 unaudited financial statements.
NYSE:AMBO shares closed on June 1, 2012 as low as $4.06 per share.