Overview

A class action lawsuit has been filed against China Liberal Education Holdings Limited (“CLEU” or the “Company”) (Other : CLEUF; formerly NASDAQ : CLEU), certain of the Company’s senior officers and directors, the Company’s transfer agent, and CLEU’s investor relations firm (collectively, “Defendants”), alleging violations of the federal securities and RICO laws. The CLEU lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired CLEU securities between January 22, 2025, and January 30, 2025 (the “Class Period”). Investors have until March 31, 2026, to seek appointment as lead plaintiff of the CLEU class action lawsuit.

CLEU is a Cayman Islands holding company that purports to provide educational services and technology solutions in China. According to the complaint, by late 2023 the Company’s core business lines had collapsed, it could no longer operate profitably, and its most valuable remaining asset was its public listing on NASDAQ in the United States. 

The CLEU class action further alleges that, faced with a failing business and repeated delisting threats, CLEU’s senior management coordinated with investor-relations firms, its transfer agent, and an international criminal syndicate to monetize the Company’s public listing through a “pump-and-dump” scheme. In December 2024, CLEU conducted non-bona fide securities issuances that transferred hundreds of millions of shares and warrants to co-conspirators. Through a warrant exchange, approximately 240 million shares were issued and secretly made available for trading, while the Company and its transfer agent concealed this massive dilution from investors, regulators, and the market for weeks. 

For almost all of January 2025, the market believed that there were only 29 million CLEU shares outstanding, when the actual share count was nearly ten times as much. During this time, individuals secretly associated with CLEU posed as financial advisors and used social media to fraudulently induce investors to purchase CLEU shares. Using a fake analyst report and other materials, these individuals touted the strength of the Company’s business and a soon-to-be-completed merger with a U.S.-based education company that would lead to “explosive growth” in CLEU’s share price. These efforts artificially inflated the Company’s stock price, allowing CLEU associates to liquidate their previously undisclosed stockpile of CLEU shares, resulting in more than $334 million in illicit proceeds. 

The truth was revealed on January 29, 2025, when the reported number of CLEU shares outstanding was updated to reflect the 240 million previously undisclosed shares. This disclosure caused CLEU’s stock price to fall precipitously, as the market became aware that the actual number of shares outstanding was 269 million, and not 29.3 million as previously reported. CLEU stock opened at $1.03 per share on January 30, compared to a closing price of $7.75 per share the previous day. By the end of the day, the Company’s stock price had collapsed to less than $0.15 per share—a one-day loss of 98%.

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If you purchased or otherwise acquired CLEU securities between January 22, 2025, and January 30, 2025, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the CLEU class action lawsuit is March 31, 2026.