NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is investigating whether certain directors and officers of Bridgepoint Education (“Bridgepoint” or the “Company”) (NYSE:BPI) breached their fiduciary duties to Bridgepoint and its shareholders. If you are a Bridgepoint shareholder, you are encouraged to contact attorney Joe Pettigrew toll-free at (844) 818-6982 or at email@example.com.
Bridgepoint, together with its subsidiaries, provides postsecondary education services in the United States. As a means of increasing enrollment, Bridgepoint formed various corporate partnerships with employers to offer their employees a way to pursue and complete a college degree without incurring any student debt, referred to as the Corporate Full Tuition Grant (“FTG”) program. In 2017, enrollments in Bridgepoint’s FTG program accounted for approximately 10% of its total enrollment.
Scott+Scott is investigating whether Bridgepoint and its directors and officers made, or allowed Bridgepoint to make, false and/or misleading statements and/or failed 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 stock price plummeted by $3.21 per share, or over 34%, to close at $6.22 per share on March 7, 2019, on unusually heavy trading volume.
What You Can Do
If you are a Bridgepoint shareholder, you may have legal claims against the Company’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or at firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.