Oct 1 New Oriental Education & Technology Group
Inc said its investigation did not find any
"significant" evidence to support certain allegations raised by
short-seller Muddy Waters.
Carson Block's Muddy Waters in July alleged that the
education provider had lied about its entire store network being
company owned and the franchise fees were used to inflate its
China-based New Oriental had rejected the allegations then,
before proceeding to set up a special committee to investigate
The committee comprised the company's three independent
directors, New Oriental said.
New Oriental shares, which have gained 16 percent since the
allegations were made on July 18, were up 5 percent in morning
trading on the New York Stock Exchange.