TAL Rebuts Muddy Waters Again for New Shorting Report
Liao Shumin
/SOURCE : Yicai
TAL Rebuts Muddy Waters Again for New Shorting Report

(Yicai Global) July 4 -- China's TAL Education Group has again hit back at Muddy Waters following the activist investment firm's release of a second short-selling report.

Muddy Waters, notorious for short selling China's overseas-listed stocks, claims that TAL fraudulently reported 90 percent and even 175 percent of deferred revenue when acquiring Firstleap Education in 2015 in a move to inflate profits in the 2017 financial year.

"Similar to the initial allegations made by the same short seller in June 2018, the additional allegations are based on erroneous conjectures and assumptions," the Beijing-based firm said in a statement.

TAL investors appear nonplussed by the report. The share price [NYSE:TAL] increased by 2.42 percent yesterday to close at USD38.86. 

Muddy Water's second report on TAL comes just two weeks after the California-based firm accused the educator of TAL fraudulently conducting investments in Shunshun Education and Izhikang One-to-One, again relating to deferred revenue to bolster profits. The company turned its nose up at TAL's previous rebuttal of its claims, expressing surprise at the listed firm's lack of positive response to the first installment.

Editor: William Clegg

Follow Yicai Global on
Keywords: MUDDY WATERS , TAL Education Group , Firstleap , Short