Bridgepoint Falls 25% after Denied Accreditation Application
Shares of Bridgepoint Education (NYSE: BPI) are seeing increased weakness during Monday's trading session after the company's Ashford University was denied initial accreditation.
The Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges (WASC) acted to deny Ashford University's application for initial accreditation. WASC is one of seven regional accrediting commissions, with jurisdiction over schools located in the states of California and Hawaii, as well as the U.S. Pacific Islands.
Ashford has informed WASC that it intends to initiate an appeal of the WASC decision in accordance with WASC's established procedures and time frames, and that it also intends to undertake the parallel process afforded by WASC to re-apply for initial accreditation.
This will be accomplished through the submission of a report responding to the conclusions of the Commission's action letter, with a visit as early as Spring 2013. The re-application process does not require the University to undertake a full self study.
Monday, shares of Bridgepoint Education are trading down over 24 percent, at about $16.28 per share.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.