NEW YORK, Nov. 28, 2017 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against RYB Education, Inc. (“RYB” or the “Company”) (NYSE: RYB) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired RYB’s American Depositary Receipts (“ADRs”): (1) pursuant and/or traceable to RYB’s Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about September 27, 2017 (the “IPO” or the “Offering”); and/or (2) on the open market between September 27, 2017 and November 22, 2017, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/ryb.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
RYB Education, Inc. offers educational services. The Company operates kindergarten and pre-schools. RYB Education provides training in a variety of subjects and languages, teacher recruitment, guidance, innovative learning, development of children, rating systems, parents consulting, and other services.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) RYB failed to establish safety policies to prevent sexual abuse from occurring at its schools; (2) 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 (3) consequently, RYB securities traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On November 24, 2017, various news outlets reported that police have opened an investigation into RYB after numerous parents accused a RYB nursery of drugging and molesting their children. Beijing’s education authority confirmed the police investigation in a statement. According to China’s leading newspaper Xinhua News Agency, RYB has suspended multiple teachers at RYB Education New World after kindergarten students were “reportedly sexually molested, pierced by needles, given unidentified pills,” 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 had given similar accounts with respect to their abuse. Following this news, RYB’s ADR price fell $10.28 per share, or over 38% from its previous closing price, to close at $16.45 per share on November 24, 2017.
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