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Stock Price of RYB Education Plunged; Could Face Class Action Lawsuit

VOA published an article following the reports of alleged child abuse at RYB Education, Inc. After the parent’s claims of abuse, the stock price of RYB Education, Inc. plunged 38 percent to US$16.46 on the New York Stock Exchange on Black Friday. This is below its IPO price of US$18.50. Board members of RYB Education have also declared they will buy back US$50 million of its stock in the next 12 months. RYB Education is an early child kindergartner education center. Reports were made that, after a number of parents noticed that their children had received injections with needles, were forced to ingest unknown pills or were stripped naked, news first broke out on social media. The official media, including CCTV and Xinhua then reported the news. The police department has, currently, launched an investigation into the case. During an interview with VOA, one early child educator who chose to remain anonymous said that the parents of RYB kindergartners were very afraid after they saw that a large number of posted videos on social media had been deleted. They believed that, as more and more videos were deleted, it was more likely that the officials wanted to take control of the situation. The parents were concerned that, since the police had not drawn any conclusions on the case, the parents might never get back the videos they turned over to the police. The end result could just be the arrest of a few scapegoats to close the case. Some parents were even considering filing a class action lawsuit in the U.S. because they thought that the Wall Street legal firm that represents the IPO of this company should also take legal responsibility.

Source: VOA Chinese, November 24, 2017