Stock Alert: TAL Education Group Slips 7%

(RTTNews) - Shares of TAL Education Group (TAL) are losing more than 7 percent in Wednesday's trading at $51.89 after the company said it discovered certain employee wrongdoing. The stock has traded in a range of $30.78 to $59.76 in the past 52 weeks.

TAL Education Group is a K-12 after-school tutoring services provider in China.

Tuesday, the company said that during its routine internal auditing process, it discovered certain employee wrongdoing in the company's newly introduced "Light Class" business.

Based upon the internal audit, the company suspects that the employee 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 about 3 percent to 4 percent of the company's total estimated revenues.

After discovery of the wrongdoing, TAL Education immediately reported to the local police and the employee was taken into custody.