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SHAREHOLDER ALERT: Investigation on Behalf of Education Management Corporation Investors Announced by Law Offices of Howard G. Smith

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BENSALEM, Pa.--(BUSINESS WIRE)--

Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of purchasers of the securities of Education Management Corporation (“EDMC” or the “Company”) (NASDAQ: EDMC) concerning possible violations of federal securities laws. The investigation is focused on certain statements issued by the Company between August 8, 2012 and September 16, 2014, concerning EDMC's business and operational and compliance policies. EDMC provides post-secondary education, undergraduate and graduate degrees, and specialized non-degree diplomas in North America through campus-based and online instruction.

The investigation is related allegations that EDMC was: (i) overstating revenue by not properly increasing its bad debt reserve upon student withdrawals; (ii) overstating goodwill; (iii) manipulating federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011; and (iv) violating federal regulations enacted in June 2011 related to its recruiting and enrollment practices.

On September 16, 2014, EDMC notified the Securities and Exchange Commission that EDMC would delay filing its Annual Report on Form 10-K for the period ended June 30, 2014. According to the Company, the delay is “due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to our revenue recognition and related bad debt reserve recorded upon student withdrawals from school.” Following this news, EDMC shares dropped almost 10%, or $0.12 per share, to close at $1.10 per share on September 17, 2014.

If you purchased EDMC securities between August 8, 2012 and September 16, 2014, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
(215) 638-4847
(888) 638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com

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