LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that it is investigating potential claims on behalf of purchasers of the securities of Education Management Corporation (“EDMC” or the “Company”) (NASDAQ:EDMC) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by the Company between August 8, 2012 and September 16, 2014.
Please contact Lesley Portnoy at (310) 201-9150, or at firstname.lastname@example.org to discuss this matter. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
EDMC provides post-secondary education, including undergraduate and graduate degrees and specialized non-degree diplomas in North America, through campus-based and online instruction. The investigation is related to allegations that EDMC issued materially false and misleading statements or failed to disclose material information concerning the Company’s business and operational and compliance policies. Specifically:
- EDMC was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals.
- The Company was overstating goodwill.
- EDMC manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011.
- The Company’s recruiting and enrollment practices violated federal regulations enacted in June 2011.
On September 16, 2014, the Company notified the Securities and Exchange Commission that EDMC would delay filing its Annual Report on Form 10-K for the period ended June 30, 2014. According to the Company, the delay is “due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to our revenue recognition and related bad debt reserve recorded upon student withdrawals from school.” Following this news, EDMC shares dropped almost 10%, or $0.12 per share, to close at $1.10 per share on September 17, 2014.
If you purchased EDMC securities between August 8, 2012 and September 16, 2014, if you have information, or would like to learn more, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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