SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of DeVry Education Group, Inc. (“DeVry” or the “Company”) (NYSE: DV) between February 4, 2011 and January 27, 2016, inclusive (the “Class Period”).
If you purchased or otherwise acquired DeVry securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 12, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
DeVry investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the DeVry Securities Class Litigation
DeVry provides educational services worldwide through a number of subsidiaries, including DeVry University.
The action alleges that throughout the Class Period, Defendants made false and misleading statements and/or failed to disclose, among other things, that: (i) DeVry University engaged in a multi-year deceptive marketing and advertising campaign; (ii) DeVry University overstated its students’ ability to find employment after graduation (iii) DeVry University overstated the potential income its students could earn after graduation; and (iv) as a result, DeVry overstated its growth, revenue, and earnings potential by concealing the true employment prospects of DeVry University graduates to investors and potential students.
On January 27, 2016, the Federal Trade Commission (“FTC”) sued DeVry, alleging that it engaged in deceptive practices by purposefully misrepresenting the benefits of obtaining a degree from DeVry University. The FTC alleged in particular that DeVry was being deceptive when it claimed in advertisements and public filings that 90% of DeVry University graduates actively seeking employment secured jobs in their field of study within six months of graduating, and that its graduates had 15% higher incomes one year after graduation on average than the graduates of all other colleges or universities. The same day, the U.S. Department of Education issued a Notice of Intent to Limit DeVry’s participation in programs authorized pursuant to Title IV of the Higher Education Act (“HEA”) because DeVry failed to comply with certain HEA requirements for substantiating the truth of advertisements. On this news, the price of DeVry common stock fell $3.65 per share, or 15.37%, from its closing price of $23.74 on January 26, 2016, to close at $20.09 per share on January 27, 2016, on extraordinarily heavy trading volume.
On May 9, 2016, the federal judge presiding over the FTC’s case against DeVry denied DeVry’s request to dismiss the FTC’s lawsuit, finding, among other things, that the “allegations show that the FTC’s claims have factual basis and provide Defendants with adequate notice as to the FTC’s reason for believing that the employment statistic is unsubstantiated and materially false.”
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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