NEW YORK--(BUSINESS WIRE)--Zamansky & Associates LLC has launched an investigation on behalf of investors who purchased the common stock of for-profit college education companies listed below for violation of federal securities laws. On August 3, 2010, the U.S. General Accounting Office (“GAO”) issued a report that concluded that for-profit educational institutions had engaged in an illegal and fraudulent course of action designed to recruit students and overcharge the federal government for the cost of such education. The GAO investigated for-profit colleges in Arizona, California, Florida, Illinois, Pennsylvania, Texas and Washington, D.C. Recruiters at all 15 colleges studied by the GAO were found to have misled potential students about the costs, duration and quality of their programs.
ITT Educational Services Inc. (NASDAQ: ESI)
Apollo Group Inc. (NASDAQ: APOL)
Grand Canyon Education Inc. (NASDAQ: LOPE)
Corinthian Colleges Inc. (NASDAQ: COCO)
American Public Education Inc. (NASDAQ: EPI)
Bridgepoint Education, Inc. (NYSE: BPI)
Capella Education Company (NASDAQ: CPLA)
Career Education Corporation (NASDAQ: CECO)
Education Management (NASDAQ: EDMC)
Lincoln Educational Services Co. (NASDAQ: LINC)
Strayer Education, Inc. (NASDAQ: STRA)
The Washington Post Company (NYSE: WPO)
Zamansky & Associates LLC is investigating whether these Companies engaged in false and/or misleading statements and/or failed to disclose to investors: (1) their overstated growth prospects by engaging in illicit and improper recruiting activities, which also had the effect of artificially inflating the Companies’ reported results and future growth prospects; (2) the Companies’ financial results were overstated in that the Companies’ colleges inflated tuition costs and its student loan repayment rates were well below levels required for participation in federal loan programs; (3) the Companies failed to maintain adequate systems of internal operational or financial controls; and (4) the Companies lacked a basis for their positive statements about their financial results, their prospects and growth.
As a result of these revelations, the Companies’ stock prices fell substantially during the last several weeks, and may have been artificially inflated for several years.
One such class action lawsuit was filed in the United States District Court, Central District of California against Corinthian Colleges, Inc. ("Corinthian" or the "Company") and certain of its top officials. The class action was filed on behalf of purchasers of Corinthian securities during the period of October 30, 2007 through and including August 19, 2010 (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. There is a deadline for filing motion for appointment as lead Plaintiff motion so please contact us as soon as possible if you wish us to represent you in filing such a motion.
If you have suffered from financial losses in stocks for any of the Companies or other for-profit education colleges, you may have a legal claim to recover your losses or other damages. Please contact us as soon as possible to protect your rights.