PHILADELPHIA CREAM, June 28, 2022 /PRNewswire/ — Shepherd Montague is investigating allegations of securities fraud on behalf of investors who purchased the American Depository Shares (“ADS”) of First High-School Education Group Co., Ltd. (“FHS” or the “Company”) (NYSE: FHS) on or traceable to the Company March 2021 initial public offering (the “Class Period”).
If you purchased the FHS ADS during the Class Period, would like to discuss At Berger Montague investigation, or if you have any questions regarding your rights or interests, please contact the lawyers Andre Abramowitz at [email protected] or (215) 875-3015, or Michael Dell‘Angelo at [email protected] or (215) 875-3080 or visit: https://investigations.bergermontague.com/first-high-school-education-group/
Whistleblowers: Anyone with non-public information regarding FHS is encouraged to help confidentially. At Berger Montague survey or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to the complaint, FHS, its senior management and the underwriters of its IPO made materially false statements in the IPO offering documents and failed to disclose that: (i) the new rules, regulations and policies to be implemented by the Chinese government after the Two Sessions, the parliamentary meetings were far more severe than represented; and (ii) the regulations being considered by the Chinese government were causing a slowdown in government permission to open new educational institutions, which would have a negative effect on FHS enrollment and growth.
Shortly after the IPO, media reported that attendees at the Two Sessions conference had proposed tougher regulations to curb the for-profit education industry. On May 12, 2021news reports have revealed that the impending government crackdown on for-profit education companies in China would be far more drastic and far-reaching than previously publicly known. Then, on May 14, 2021, China The state council announced rules that it would further tighten regulations on compulsory education and training institutions.
Subsequently, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, barring companies that teach the school curriculum from making a profit, raising capital or going public. These drastic measures effectively ended any potential growth of the for-profit tutoring industry by China.
By May 10, 2022Closed FHS ADS below $1 per ADS – more than 90% below the price at which they were sold during the IPO.
Shepherd Montaguewith offices at philadelphia cream, Minneapolis, washington d.c.and San Diegohas been a pioneer in securities class actions since its founding in 1970. Shepherd Montague has represented individual and institutional investors for over five decades and acts as lead counsel before courts across United States.
Andre Abramowitzsenior counsel
Michael Dell‘Angelo, executive shareholder
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