The Unbiased Truth About Nova

[Elizabeth]

I think this is a cut above the run-of-the-mill anti-Nova lawsuit, Usually the government doesn't get involved. Its definitely not the end of the world for NOVA but this time they are getting way more bad publicity and may face administrative action by the government (as opposed to just paying damages to aggrieved clients). I read that NOVA's stock dropped about 14% the day this story came out.

It isn't the end of the line by any means, although this ruling today by the Japanese Supreme Court today did go against the company and agreed that refund amounts for cancelled contacts were systematically undercalcuated.
As a result, NOVA has been ordered to compensate the plantiff more than 300,000 yen and will be threatened with a freeze on admitting new students for noncompliance. Anyone know how much their stock price went down the day this ruling was announced ? The publicity is getting more and more damaging. It'll be really interesting to watch the fallout from all this on pending cases as well as NOVA's overall financial health and corporate viability.

http://search.japantimes.co.jp/cgi-b...0070404a1.html

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It isn't the end of the line by any means, although this ruling today by the Japanese Supreme Court today did go against the company and agreed that refund amounts for cancelled contacts were systematically undercalcuated.
As a result, NOVA has been ordered to compensate the plantiff more than 300,000 yen and will be threatened with a freeze on admitting new students for noncompliance.

NOVA Dealt Penalty for Deception

Nova Corp., the nation's largest English-language school chain, was ordered by the government Wednesday to partially suspend business for six months for lying to customers about its services.

NOVA Barred from Making Long Contracts

The Economy, Trade and Industry Ministry said Wednesday it ordered Nova Corp., the nation's largest English language school chain, to suspend for six months its recruitment of customers for new contracts of more than one year or 70 lesson hours, starting Thursday.

NOVA Handed Suspension Order over Tuition Fee Practices

Furthermore, when inviting students to take lessons, the company advertised that they could book lessons any time they wanted, but because of the difficulty in securing teachers, it remained difficult to make bookings.

NOVA's response