TAL Education (TAL) suspects employee conspired with external vendors to inflate sales

(Updated - April 7, 2020 4:14 PM EDT)

TAL Education Group (NYSE: TAL), a leading K-12 after-school tutoring services provider in China, today announced certain employee wrongdoing discovered in the Company's routine internal auditing process. TAL 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. Upon such discovery, TAL immediately reported to the local police. The employee has been taken into custody by the local police.

Based upon the Company's routine internal 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. For the fiscal year 2020 ended February 29, 2020, "Light Class" sales accounted for approximately 3% to 4% of the Company's total estimated revenues.

TAL highly values the integrity of business practices and the ethics of employee conducts, having zero tolerance of any illegal act. The Company has always been and will remain committed to maintaining high standards of corporate governance, as well as transparent and timely disclosure in compliance with the applicable rules and regulations of the Securities and Exchange Commission and the New York Stock Exchange.

You May Also Be Interested In

• Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend
• Belite Bio (BLTE) Announces $25 Million Registered Direct Offering
• Business First Bancshares Inc. (BFST) to acquire Oakwood Bancshares