Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased or otherwise acquired the common stock of Career Education Corporation ("Career Education" or the "Company") (Nasdaq: CECO) between January 1, 2009 and November 1, 2011, inclusive (the "Class Period") alleging violations of the Securities Exchange Act of 1934 (the "Complaint").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://investigations.rigrodskylong.com/career-education-corporation-ceco/.
Career Education operates colleges, schools, and universities that provide educational services in career-oriented disciplines primarily in the United States.
The Complaint names Career Education and certain of the Company's directors and officers as defendants. It is alleged, that during the Class Period, Career Education reported inflated and false Placement Rates to the Accrediting Counsel for Independent Colleges and Schools ("ACICS"), the Accrediting Commission of Career Schools and Colleges ("ACCSC") and the Company's other accrediting agencies, and, as a result, misled its investors as to the health and condition of the Company, in particular its ability to continue to receive Title IV Funding.
On May 17, 2011, Career Education announced that it had received a subpoena from the Attorney General of the State of New York (the "NYAG"). The subpoena requested documents pertaining to student employment outcomes and Placement Rates of graduates, among other items, in connection with the NYAG's investigation into whether the Company and certain of its schools complied with certain New York state consumer protection, securities, finance and other laws.
On August 3, 2011, the Company reported that it had retained outside counsel (subsequently identified as Dewey & LeBoeuf LLP) to conduct an internal investigation to determine if the Placement Rates that CECO was reporting to various accreditation agencies were accurate. On November 1, 2011, the Company released the preliminary results of the investigation by Dewey & LeBoeuf LLP ("Dewey Report"), which showed that many of the Company's schools had been artificially inflating the Placement Rates reported to accreditation agencies
On November 1, 2011, Career Education announced its quarterly earnings wherein it disclosed that the Dewey Report confirmed that it had identified certain placements that lacked sufficient supporting documentation or otherwise did not meet applicable placement guidelines established by the Company.
In response to the foregoing news, certain key Company senior executives resigned immediately and Career Education stock plummeted almost 50% to close at $8.32 per share on November 2, 2011 from the previous day's close of $15.95 per share, on very heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than March 13, 2012. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Contacts:
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Noah R.
Wortman, Case Development Director
888-969-4242
302-295-5310
Fax:
302-654-9430
info@rigrodskylong.com
http://www.rigrodskylong.com
