Philadelphia, Pennsylvania – Newsfile Corp. – July 5, 2022 – Berger Montague is investigating allegations of securities fraud on behalf of investors who purchased the American Depository Stock (“ADS”) of First High-School Education Group Co., Ltd. (NYSE: FHS) (“FHS” or the “Company”) on, or which may relate to, the Company’s March 2021 IPO (the “Class Period”).
If you purchased the FHS ADSs during the Class Period, wish to discuss Berger Montague’s investigation, or have any questions regarding your rights or interests, please contact attorneys Andrew 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 nonpublic information about FHS is encouraged to confidentially participate in Berger Montague’s investigation or take advantage of the SEC’s 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, 2021, news reports revealed that the impending government crackdown on for-profit educational enterprises in China would be far more drastic and far-reaching than before. Then, on May 14, 2021, China’s 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, banning companies that teach the school curriculum from making a profit, raising capital, or going public. These drastic measures have effectively ended any potential growth of the for-profit tutoring industry in China.
As of May 10, 2022, FHS ADSs closed below $1 per ADS, more than 90% below the price at which they were sold during the IPO.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C. and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for more than five decades and acts as lead counsel in courts across the United States.
Andrew Abramowitz, Senior Counsel
Michael Dell’Angelo, executive shareholder
The issuer is solely responsible for the content of this announcement.