RYB Education Inc – ADR (NYSE: RYB) Investor Securities Class Action Lawsuit 11/27/2017

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Company Name(s): 
RYB Education
Case Name: 
RYB Education Shareholder Class Action Lawsuit 11/27/2017
Case Status: 
Case Dismissed
Affected Securities
NYSE: RYB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/27/2017
Class Period Begin: 
09/27/2017
Class Period End: 
11/22/2017
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
01/26/2018
Case Dismissed: 
06/18/2018
Summary: 

June 18, 2018 - The lead plaintiffs filed a notice of voluntary dismissal without prejudice.

April 10, 2018 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

January 3, 2018 - Cases were consolidated.

November 27, 2017 - An investor in shares of RYB Education Inc – ADR (NYSE: RYB) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by RYB Education Inc in connection with certain allegedly false and misleading statements made between September 27, 2017 and November 22, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of RYB Education Inc – ADR (NYSE: RYB) common shares between September 27, 2017 and November 22, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 27, 2017 and November 22, 2017, the defendants made materially false and/or misleading statements and/or failed to disclose that RYB Education Inc failed to establish safety policies to prevent sexual abuse from occurring at its schools, that RYB Education Inc’s failure to remedy problems within its system exposed children to harm and unreasonable risk of harm while in its care, and that as a result of the foregoing, RYB Education Inc securities traded at artificially inflated prices between September 27, 2017 and November 22, 2017.

RYB Education Inc is engaged in providing early childhood education services in China. The Company develops various educational products and services, such as teaching aids, educational toys and at-home education products and services.

On November 24, 2017, various news outlets reported that police have opened an investigation into RYB Education Inc after numerous parents accused a RYB Education Inc nursery of drugging and molesting their children. Beijing’s education authority confirmed the police investigation in a statement. According to Xinhua, RYB Education has suspended multiple teachers at RYB Education New World after kindergarten students claimed that they had been given unidentified pills and brown syrup, 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 are giving similar accounts of what occurred.

Shares of RYB Education Inc – ADR (NYSE: RYB) declined to as low as $16.45 per share on November 24, 2017.