The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired China Liberal Education Holdings Limited (“CLEU” or the “Company”) (OTC: CLEUF) securities between January 22, 2025 and January 30, 2025, inclusive (the “Class Period”). CLEU investors have until March 31, 2026 to file a lead plaintiff motion.

What Happened?

On January 29, 2025, CLEU filed a Change in Shares Outstanding form with NASDAQ, reporting 240,000,000 previously undisclosed Exchanged Shares. This caused CLEU’s stock price to plunge from a closing price of $7.75 the previous day to $0.148 per share, a 98.1% loss.

Investors soon learned that certain financial advisors in WhatsApp groups were, in reality, criminal scammers, and that the information they had been provided regarding the Company was false, misleading, and unreliable.

In June 2025, CLEU was delisted by NASDAQ.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) CLEU shares were subject to a pump-and-dump scam; (2) the December 2024 Issuance and the Warrant Exchange Agreement were non-bona fide transactions designed to put CLEU shares in the hands of the Cedric Indictees and their co-conspirators for use in that scam; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.