Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
07/22/2021
Initial Lawsuit
02/04/2022
Lawsuit Progression
06/07/2022
This is a securities class action on behalf of all persons who purchased New Oriental American depository shares (ADSs) between April 24, 2018 and July 22, 2021, both dates inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(a) that New Oriental’s revenue and operational growth was the result of deceptive marketing tactics and abusive business practices that flouted Chinese regulations and policies and exposed the company to an extreme risk that more draconian measures would be imposed on the company;
(b) that New Oriental had engaged in misleading and fraudulent advertising practices, including the provision of false and misleading discount information designed to obfuscate the true cost of the company’s programs to its customers;
(c) that New Oriental had falsified teacher qualifications and experience in order to attract customers and increase student enrollments;
(d) that New Oriental had defied prior government warnings against linking school enrollments with the provision of private tutoring services;
(e) that, as a result of the foregoing, New Oriental was subject to an extreme undisclosed risk of adverse enforcement actions, regulatory fines and penalties, and the imposition of new rules and regulations adverse to the company’s business and interests; and
(f) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and lacked a reasonable factual basis.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.