New Oriental Education & Technology Group Inc.

Allegations of securities fraud and misleading financial statements by New Oriental Education & Technology Group Inc.

A class action lawsuit was filed in the U.S. District Court for the Central District of California against New Oriental Education & Technology Group Inc. (EDU) and certain executive officers. The lawsuit alleges violations of federal securities laws for making false and misleading statements and failing to disclose material adverse facts about the company's business, operations, and prospects between July 21, 2009, and July 17, 2012. Allegations include improper consolidation of a variable interest entity, misrepresentation of store network ownership, inflated cash balances due to franchise fees, and lack of internal controls. The SEC issued an order of investigation on July 13, 2012, concerning the consolidation of a variable interest entity, which caused a significant stock price decline. A subsequent report by Muddy Waters Research further impacted the stock price.

• Persons or entities who purchased American Depositary Shares (ADSs) of New Oriental Education & Technology Group Inc. (EDU) between July 21, 2009, and July 17, 2012, inclusive.
• Shareholders who suffered damages.