LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP, representing investors of ITT Educational Services Inc. (“ITT” or the “Company”) (NYSE:ESI), has filed a class action lawsuit in the United States District Court for the Southern District of Indiana on behalf of a class (the “Class”) comprising purchasers of ITT securities between February 26, 2013 and September 18, 2014, inclusive (the “Class Period”).
Please contact Lesley Portnoy at (888) 773-9224 or (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.
ITT provides postsecondary degree programs in the United States in various fields, including business, criminal justice, information technology, electronics technology, drafting and design, and nursing and health sciences. The Complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects, including material information concerning two private education loan programs for its students.
Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company had failed to consolidate the financial results of the PEAKS Trust into ITT’s financial results; (2) the Company’s financial statements contained errors related to the accounting of the PEAKS Trust and PEAKS Program; (3) the Company had improperly accounted for is guarantee obligations under the PEAKS program; (4) as a result, the Company’s financial results were overstated; (5) the Company lacked adequate internal and financial controls; and (6), as a result of the foregoing, ITT’s financial statements were materially false and misleading at all relevant times.
On September 19, 2014, the Company filed a Form 8-K with the Securities and Exchange Commission and disclosed that on August 7, 2014, the Company received a “Wells Notice” from the Securities and Exchange Commission, Division of Enforcement, notifying the Company that the division Staff had made a preliminary determination to recommend that the SEC file an enforcement action against the Company.
According to the Company, the Staff informed ITT that “the enforcement action would allege violations of Sections 10(b), 13(a) and 13(b)(2) of the Securities Exchange Act of 1934,” and various Rules promulgated under the Exchange Act, and “the Staff’s recommendation may:
- involve a civil injunctive action, public administrative proceeding and/or cease-and-desist proceeding against us; and
- seek remedies that include an injunction, a cease-and-desist order and monetary relief, including civil monetary penalties.”
Following this news, the price of ITT shares fell 35 percent, or $2.70 per share, to close at $4.95 per share on September 19, 2014.
If you are a member of the Class described above, you may move the Court no later than 60 days from the date of this notice to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you 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, 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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