Tal Education $14.1M Securities Settlement Class Action

William C. Gendron

Editor in Chief

Published

May 26, 2026 11:07 AM

Updated

May 26, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired publicly traded Tal Education Group ADSs between Jan. 14, 2022, and March 14, 2023, inclusive, held those ADSs until at least March 14, 2023, and suffered damages as a result.

Additional details

Both individuals and entities can be class members.
Each separate legal entity or separately managed account must submit a separate claim.
Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
Executors, administrators, trustees and other representatives may submit claims on behalf of others and must provide proof of authority.
Joint claimants must each sign the claim form.

How much can class members get?

The total settlement fund is $14,100,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number of ADSs purchased or acquired during the class period
The timing of each investor purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average distribution per allegedly damaged ADS is approximately $0.09 before deductions for taxes, notice and administration costs, and attorneys' fees and expenses. After estimated deductions, the average net recovery is approximately $0.059 per ADS.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation.
The settlement administrator will apply different formulas depending on when class members sold or held their ADSs.

For ADSs sold on or before March 13, 2023, the recognized loss is $0 per ADS.
For ADSs sold on March 14, 2023, the recognized loss is the lesser of $0.82 per ADS or the difference between the purchase price and the sale price.
For ADSs sold between March 15, 2023, and June 12, 2023, inclusive, the recognized loss is the lesser of $0.82 per ADS or the difference between the purchase price and the average closing price as of the date of sale.
For ADSs retained at the close of trading on June 12, 2023, the recognized loss is the lesser of $0.82 per ADS or the difference between the purchase price and $6, the average closing price over the 90 days following the end of the class period.

The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Tal Education securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form (pages 12-18 of the settlement notice) and mail it to the settlement administrator. The deadline to file online is Oct. 8, 2026. The deadline to file by mail is Sept. 29, 2026.

Settlement administrator's mailing address: Tal Education Group Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide their full Social Security number or taxpayer identification number. They must also provide purchase, sale and holding information, including:

Number of ADSs held as of the close of trading on Jan. 13, 2022
Trade dates for purchases, acquisitions and sales from Jan. 14, 2022, through June 12, 2023
Number of ADSs purchased, acquired or sold
Total purchase, acquisition or sale price
Number of ADSs held as of the close of trading on June 12, 2023

Class members must also provide documentation to support their transactions in Tal ADSs. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker, financial advisor or financial institution containing the transactional information found in a confirmation slip

Payout options

Physical check

$14.1 million settlement fund

The $14,100,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $4,700,000
Attorneys' expenses: Up to $180,000
Service awards to plaintiffs: Up to $8,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to file a claim by mail: Sept. 29, 2026
Deadline to file a claim online: Oct. 8, 2026
Opt-out deadline by mail: Oct. 8, 2026
Opt-out deadline by email: Oct. 15, 2026
Fairness hearing: Oct. 29, 2026

When is the Tal Education class action settlement payout date?

The settlement administrator will issue payments after it completes processing and the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Tal Education Group made false and misleading statements regarding its tutoring programs' compliance with the Double Reduction, Chinese government regulations that banned for-profit entities from engaging in after-school tutoring on academic subjects. The plaintiffs claimed these statements artificially inflated the price of Tal ADSs and caused investor losses when the company issued corrective information.

Tal denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.