10:52, 28-Nov-2017
RYB Education: Stock tumbled 38% last week following allegations
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The RYB Education, the company that operates that kindergarten, has seen its stock price tumble in the wake of these allegations. At least two New York law firms have started investigations into the education group. One of the lawyers says RYB may have violated US securities regulations. John Terrett brings more from New York.
JOHN TERRETT NEW YORK Shares in RYB Education plunged around 38% last week as investors dumped shares in the Chinese based pre-school operator.
Beijing police are investigating claims of molestation and abuse at one of the school's kindergartens in the Chinese capital.
RYB Education shares were floated on the New York Exchange in September - last week's decline saw its shares dip below the initial public offering price.
RYB is one of the largest providers of early childhood education services in China. The company's website says it operates in 300 Chinese cities.
According to Chinese media, this is the latest in a string of scandals that have plagued RYB in the last two years.
Shares in RYB Inc recovered a little on Monday's trading session, closing at $18 per share. John Terrett, CGTN, New York