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INVESTOR ALERT: Class Action Lawsuit Against Education Management Corporation Announced By Glancy Binkow & Goldberg LLP

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LOS ANGELES--(BUSINESS WIRE)--

Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Western District of Pennsylvania on behalf of a class (the “Class”) comprising purchasers of the securities of Education Management Corporation (“EDMC” or the “Company”) (NASDAQ: EDMC) between August 8, 2012 and September 16, 2014, inclusive (the “Class Period”).

Please contact Casey Sadler at (888) 773-9224 or (310) 201-9150, or at shareholders@glancylaw.com to discuss this matter. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

EDMC provides post-secondary education, including undergraduate and graduate degrees and specialized non-degree diplomas in North America, through campus-based and online instruction. The Complaint alleges that defendants issued false and misleading statements or failed to disclose material information regarding the Company's business and operational and compliance policies, including that:

  • EDMC was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals.
  • The Company was overstating goodwill.
  • EDMC manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011.
  • The Company's recruiting and enrollment practices violated federal regulations enacted in June 2011.

On September 16, 2014, the Company 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 are a member of the Class described above, you may move the Court no later than November 18, 2014, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Binkow & Goldberg LLP, Los Angeles, CA
Casey Sadler
310-201-9150
888-773-9224
shareholders@glancylaw.com
www.glancylaw.com

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