China Education Alliance rebuffs attacks

New York-listed China Education Alliance (CEU) has issued a statement categorically denying all allegations made by Kerrisdale Securities.

In a report, Kerrisdale said CEU is "fabricating its SEC financial statements" and that they believe "the company’s revenue and profit are highly overstated in its SEC filings and that the company is mostly a hoax."

It also said CEU’s websites aren’t fully functional, and that it hired an investigator to visit the company’s training center in Harbin and "found it to be barren of desks and teaching equipment."

In a statement, CEU said, "The Company will explore all options available to it, including . . . without limitation, aggressively pursuing legal remedies for damages caused to the Company and its shareholders."

Benzinga reported Kerrisdale principal Sahm Adrangi as saying the investment firm "stands by our report and believes that our 28 pages of evidence that the company is defrauding investors speaks for itself."