Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Corinthian Colleges, Inc.
Bernstein Liebhard LLP today announced that a securities class action has been commenced in the United States District Court for the Southern District of New York on behalf of all those who purchased shares of Corinthian Colleges, Inc. (NASDAQ: COCO) ("Corinthian" or the "Company") between August 23, 2011 and June 10, 2013, inclusive (the "Class Period").
Corinthian is a publicly traded, for-profit education company headquartered in Santa Ana, CA. Corinthian operates a total of 105 campuses in 25 States, along with an online division, and offers diploma and degree programs in health care, business, criminal justice, transportation technology and maintenance, construction trades, and information technology. Approximately 34 percent of Corinthian students are enrolled online, and 64 percent are enrolled in diploma (non-degree) programs.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) defendants manipulated federal student loan and grant programs in order to appear to comply with new federal regulations enacted in June 2011; (ii) defendants' predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011; and (iii) the Company engaged in systemic grade falsification at the Company's campuses in order to appear to conform with the new regulations enacted beginning in 2011.
On June 10, 2013, the Company disclosed that the SEC was conducting an investigation into the Company, and that the SEC had requested documents and communications related to student recruitment, attendance, completion, placement, and defaults on loans, along with information on other corporate and financial matters. On this news, Corinthian securities declined $0.32 per share or nearly 11.47%, to close at $2.47 per share on June 11, 2013.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Corinthian shares during the Class Period. If you invested in Corinthian shares as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 19, 2013.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
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