RYB Education Inc (NYSE: RYB) shares tumbled Friday, following reports of Chinese Police investigating claims of sexual molestation and needlemarks on children at Beijing Kindergarten.
On Wednesday, local police started an investigation following reports from some parents of children enrolled in a class at an RYB-branded kindergarten in Beijing, claiming that their children had experienced seriously improper conduct at the kindergarten.
RYB immediately provided the security monitoring content and surveillance devices to police authorities, suspended the staff who allegedly were involved, and will continue to take all other necessary measures to promptly cooperate with police and other authorities on the investigation.
The investigation is still going. RYB says it has established a special task force under the leadership of independent directors of the Company to conduct a thorough self-inspection across all teaching facilities.
"RYB is fully committed," Friday morning’s press release said, "to the safety of each and every child who is enrolled in RYB kindergartens and will continue to execute on its best practices commensurate with its status as a leading early childhood education service provider in China."
Elsewhere in news, RYB also announced that the board of directors of the Company has approved a share repurchase program whereby the Company is authorized to repurchase its own ordinary shares in the form of American depositary shares with an aggregate value of up to $50 million U.S. during the next 12 months.
The Company expects to fund the repurchase out of its existing cash balance.
Shares in New York collapsed $9.87, or 37% by noon EST Friday, to $16.84.
