China Education Alliance Faces Class-Action Lawsuit

Caing, 12/07/10

Chinese online and on-site education provider China Education Alliance (NYSE: CEU) recently became the target of a class-action lawsuit filed by the Rosen Law Firm in the U.S. District Court for the Central District of California. The lawsuit alleges violations of the Securities Exchange Act against China Education Alliance and certain of its officers and directors for misrepresenting the company's financial performance. The complaint alleges that contrary to the company's annual reports filed with the SEC for fiscal 2008, which reported USD 24.9 mln of revenue, an annual report for the company's main operating subsidiary filed with the Chinese authorities reported less than USD 1 mln in revenue for 2008.

Editor's Note: For more background on this topic, please see "China Education Alliance Denies Allegations of Financial Misconduct," MD 11/30/10 issue.

Keywords: Internet revenue China Education Alliance CEU litigation online education law

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