Career Education Down 6.5% After Schools Enter 'Show Cause' Status with Accreditor

Career Education (NASDAQ: CECO) is trading lower on the session followings its announcement yesterday that the company's schools enter "show cause" status with accreditor. According to the company's news release, "the Accrediting Commission of Career Schools and Colleges (ACCSC) voted to direct 10 Career Education institutions to show cause as to why their accreditation should not be withdrawn."Steven H. Lesnik, chairman, president and chief executive officer of CEC said, “We have been in ongoing communication and correspondence with ACCSC since we self-reported last year regarding student placements. We maintain an open dialogue with ACCSC and intend to continue working directly with the accreditor towards a quick resolution.” Career Education is trading slightly below the $6 level, down almost 6.5% intraday.