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.

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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.

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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.

 

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