TAIPEI (Taiwan News) — After Luckin Coffee and iQiyi, another Chinese company, TAL Education, has also been accused of cooking its books, leading its share price to slide precipitously, reports said Wednesday (April 8).
According to a report in the Liberty Times, the Chinese cram school found one of its employees had falsified key financial information. With the complicity of an outside supplier, the employee polished the success of the sales figures for its Light Class program, leading others to believe that it was responsible for between 3 percent and 4 percent of the entire company’s performance.
After the scandal broke, TAL Education’s ADR lost a third of its value and posted a statement about the issue, saying it valued integrity and ethics. The employee suspected of fraud has been taken into custody by the police, the company noted.