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 publicly traded common stock of Grand Canyon Education, Inc. (“Grand Canyon” or the “Company”) (Nasdaq: LOPE) between January 5, 2018 and January 27, 2020, inclusive (the “Class Period”).
If you purchased or otherwise acquired the publicly traded common stock of Grand Canyon during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 13, 2020. 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 actions 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.
Grand Canyon 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 Grand Canyon Securities Class Litigation
Grand Canyon, headquartered in Phoenix, Arizona, is an education services company. The action alleges that Grand Canyon made misrepresentations and omissions concerning the spin-off of the Company’s education assets into Grand Canyon University (“GCU”). Defendants allegedly inflated the Company’s financial results by treating GCU as an off-balance sheet entity into which Grand Canyon stuffed with its own expenses and costs to increase Grand Canyon’s reported profits. The Company repeatedly misled investors by characterizing GCU as a proper “non-profit” and “independent” institution and misrepresenting Grand Canyon’s role as a third-party provider of education services to GCU.
On September 9, 2019, Citron Research published a report examining Grand Canyon’s financials and finding that the Company “is stuffing GCU with expenses to inflate its own profitability and as a result bankrupting GCU.” On this news, the price of Grand Canyon stock fell $4.85 per share, or 4.2%, from its closing price of $114.47 on September 9, 2019 to close at $109.62 the next day.
On November 6, 2019, after market close, Grand Canyon disclosed that it had received a letter from the U.S. Department of Education (“DOE”) denying the Company’s application to designate GCU as a non-profit entity. DOE’s denial was based on its findings that GCU was Grand Canyon’s “captive client” and GCU “is not the entity actually operating [GCU].” On this news, the price of Grand Canyon stock declined $3.80 per share, or 4.13%, from its closing price of $91.88 on November 6, 2019, to close at $88.08 on November 7, 2019.
On January 28, 2020, Citron Research released a second report containing additional details about the DOE’s findings and referenced hundreds of pages of documentation GCE had submitted to DOE that Citron obtained through a Freedom of Information Act request. The report called Grand Canyon the “educational Enron,” and concluded that Grand Canyon used a “captive non-reporting subsidiary” in order to “dump expenses and liabilities, while receiving a disproportionate amount of revenue at inflated margins in order to artificially inflate the stock price.” On this news, the price of Grand Canyon stock fell $7.43 per share, or 8.12%, from its closing price of $91.50 on January 27, 2020, to close at $84.07 on January 28, 2020, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, 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 fourteen 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.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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