TAL education group, a $33 bln chinese education platform plunges 20% on disclosure of fraudulent sales figures

by nothrowaway4me

TAL Education Group ADRs (TAL) – plunged in after-hours trading Tuesday after the Chinese education company disclosed a case of apparent sales fraud by an employee.

The company said in a statement that it “discovered irregularities and violations of the Company’s business conduct and internal control policies by an employee in the Company’s newly introduced ‘Light Class’ business,” during a routine audit.

The company “suspects that the employee of question conspired with external vendors to wrongly inflate ‘Light Class’ sales by forging contracts and other documentations,” according to the statement.

TAL said “Light Class” sales accounted for approximately 3% to 4% of the company’s total estimated revenues for the fiscal year ended Feb. 29.

www.thestreet.com/investing/tal-education-plunges-in-after-hours-on-sales-fraud-disclosure?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

TL:DR Stop it, get some help.