SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Eastern District of Virginia on behalf of purchasers of K12 Inc. (NYSE:LRN) common stock between April 27, 2020 and September 18, 2020, inclusive (the “Class Period”). The case is captioned Lee v. K12 Inc., No. 20-cv-01419, and is assigned to Judge Liam O’Grady. The K12 class action lawsuit charges K12 and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased K12 common stock during the Class Period to seek appointment as lead plaintiff in the K12 class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the K12 class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the K12 class action lawsuit. An investor’s ability to share in any potential future recovery of the K12 class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the K12 class action lawsuit or have questions concerning your rights regarding the K12 class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the K12 class action lawsuit must be filed with the court no later than January 19, 2021.
K12 is a technology-based education company that provides proprietary and third-party educational curriculum, teacher training, administrative support, information technology support, software systems, and educational services. Beginning in March 2020, the global pandemic forced school districts across the country to close in-class instruction and shift all learning activities to online and blended instruction. K12 saw a unique opportunity to revamp itself by seizing a large stake in the rapidly growing market for online education.
The K12 class action lawsuit alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic; (ii) K12 lacked adequate cyber-attack protocols and protections to prevent the disabling of its computer system; (iii) K12 was unable provide the necessary levels of administrative support and training to teachers, students, and parents; and (iv) based on the foregoing, defendants lacked a reasonable basis for their positive statements about K12’s business, operations, and prospects.
On August 26, 2020, teachers in the Miami-Dade County School District reported that the training provided by K12 was ineffective and “unacceptable,” as they lacked the necessary instruction to utilize K12’s platform. On this news, the price of K12 common shares allegedly fell by 7% over the course of two trading days.
By the third day of classes, September 2, 2020, Miami-Dade County students and teachers reported numerous additional technical issues and a total of twelve intermittent cyber-attacks that led to K12’s learning platform being effectively dysfunctional. In response, the Miami-Dade County School District called a Board meeting to discuss K12’s many failures. During the meeting, Miami-Dade County Public Schools Superintendent Alberto Carvalho revealed that he never signed the $15.3 million no-bid contract with K12 and the school district had never paid K12 for the provision of its services and products. On this news, the price of K12 common shares allegedly fell more than 10% over the course of two trading days.
A week later, after another Board meeting that lasted over 13 hours and included 400 speakers, the Miami-Dade County Public School Board voted to terminate its $15.3 million contract with K12 on September 10, 2020. On this news, the price of K12 common shares allegedly fell more than 11%.
Finally, Beaufort County School District board member John Dowling stated that he had lost confidence in K12’s ability to provide educational solutions for the district and, on September 17, 2020, moved to terminate the district’s contract with K12. On this news, the price of K12 common shares allegedly fell nearly 5%, further damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.