NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Bridgepoint Education Inc. ("Bridgepoint" or the "Company")(NYSE: BPI) of the May 10, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Bridgepoint stock or options between March 8, 2016 and March 7, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/BPI. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased Bridgepoint securities between March 8, 2016 and March 7, 2019 (the "Class Period"). The case, Stein v. Bridgepoint Education, Inc., No. 19-cv-00460 was filed on March 8, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (i) Bridgepoint’s processes for recording revenue for its FTG program were inaccurate; (ii) Bridgepoint maintained deficient internal controls; (iii) due to the foregoing deficiencies, Bridgepoint was prone to and did commit material accounting errors related to revenue, provision for bad debts, accounts receivable and deferred revenue, which resulted in the overstatement of revenue and expenses; and (iv) as a result, Bridgepoint’s public statements were materially false and misleading at all relevant times.
On March 7, 2019, Bridgepoint announced that it had "determined to restate the Company’s previously issued unaudited condensed consolidated financial statements, and advised that those financial statements should not be relied upon, for the three and nine months ended September 30, 2018." Bridgepoint stated that the processes used for recording revenue for the FTG program portion of its student contracts "were not designed with sufficient precision," leading to "material" accounting errors related to revenue, provision for bad debts, accounts receivable and deferred revenue, which resulted in the overstatement of revenue and expenses. Bridgepoint also identified weaknesses in internal controls.
On this news, Bridgepoint's share price fell from $9.43 per share on March 6, 2019 to a closing price of $6.22 on March 7, 2019: a $3.21 or a 34.04% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Bridgepoint's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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