NEW YORK--(BUSINESS WIRE)--The law firm of Wohl & Fruchter LLP announces that it has filed a class action on behalf of investors against Bridgepoint Education, Inc. (Bridgepoint) (NYSE: BPI) and certain of its officers. The class action is based on false statements and omissions concerning the accreditation status of Bridgepoint’s academic programs and seeks damages for investors who purchased Bridgepoint shares between May 3, 2011 and July 12, 2012 (the Class Period).
If you are a shareholder who purchased Bridgepoint shares during the Class Period and wish to serve as a lead plaintiff, you have until September 11, 2012 to seek appointment by the Court. To discuss the case or learn more about becoming a lead plaintiff, please contact J. Elazar Fruchter at jfruchter@wohlfruchter.com, or call us toll free at 866.582.8140. A copy of the complaint filed by Wohl & Fruchter can be obtained at: http://www.wohlfruchter.com/cases/bpi.
As alleged in the complaint filed by Wohl & Fruchter, Bridgepoint made false statements and omissions concerning the status of its accreditation application to the Western Association of Schools and Colleges (WASC) starting in May 2011 and continuing until July 2012. While WASC notified Bridgepoint as early as May 2011 that it had specific concerns regarding its eligibility for accreditation, Bridgepoint failed to disclose those concerns when it reported on the status of its application to WASC in a May 3, 2011 conference call. Loss of accreditation would make Bridgepoint ineligible for federal student financial aid, its principal source of revenue. The concerns raised by WASC were therefore crucial facts for investors.
During the period that Bridgepoint withheld information about the concerns raised by WASC, senior Bridgepoint officers sold more than $29 million of stock.
On July 9, 2012, Bridgepoint announced that WASC had denied its application for accreditation. On this news, Bridgepoint’s stock price declined $7.25 per share, to close at $14.25 per share, a drop of nearly 34%. In its letter denying accreditation, WASC cited the prior notice it had given to Bridgepoint of its concerns in May and June 2011.
On July 13, 2012, Bridgepoint disclosed that it had received a letter from its current accreditor, the Higher Learning Commission (HLC), requesting that it “provide certain information and evidence of compliance with HLC accreditation standards” in light of the denial of accreditation by WASC. On this news, Bridgepoint’s stock declined an additional $3.20 per share or nearly 25%, to close at $9.77 per share.
The class action filed by Wohl & Fruchter seeks damages for investors who purchased Bridgepoint shares between May 3, 2011 and July 12, 2012 on the grounds that Bridgepoint’s share price was artificially inflated as a result of the defendants’ false statements and omissions.
Wohl & Fruchter LLP is an experienced securities litigation firm representing plaintiffs in class actions arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
J. Elazar Fruchter
212.758.4000 or Toll Free
866.582.8140
Wohl & Fruchter LLP
570 Lexington Avenue
New
York, NY 10022
www.wohlfruchter.com
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