SAN FRANCISCO–(BUSINESS WIRE)–
The law firm of Lieff
Cabraser Heimann Bernstein, LLP announces that a class action
lawsuit has been brought on behalf of purchasers of the common stock of Career
Education Corporation (“Career Education” or the “Company”)
(NasdaqGS: CECO) between January 1, 2009 and November
1, 2011, inclusive (the “Class Period”).
If you purchased Career Education common stock during the Class Period,
you may move the Court for appointment as lead plaintiff by no later
than March 13, 2012. A lead plaintiff is a
representative party who acts on behalf of other class members in
directing the litigation. Your share of any recovery
in the action will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff
Cabraser, or other attorneys, as your counsel in the action.
Career Education shareholders who wish to learn more about the action
and how to seek appointment as lead plaintiff should click
here or contact Sharon
Lee of Lieff Cabraser toll free at (800) 541-7358.
Background on the Career Education Securities
action is brought against Career Education and certain of its senior
officers for violations of the Securities Exchange Act of 1934. Headquartered
in Schaumburg, Illinois, Career Education is a for-profit
education company that operates more than 90 campuses in the United
States, France, Italy, the United Kingdom, and Monaco.
The complaint alleges that during the Class Period, defendants
misrepresented and omitted material information about Career Education’s
business and financial condition. Specifically,
defendants failed to disclose that Career Education improperly reported
false and inflated job placement rates of its students after graduation
to accrediting agencies so that its schools could obtain the necessary
accreditations to receive lucrative funding through federal and state
student financial aid and loan programs.
On May 17, 2011, Career Education received a subpoena from the Attorney
General of the State of New York requesting documents pertaining to
student recruitment and admissions, employment outcomes, and graduate
placement rates, among other things. After disclosing
the subpoena on May 24, 2011, the Company’s stock price fell 1.2 percent
to close at $21.69 on May 25, 2011.
On August 3, 2011, Career Education announced that it had “identified
improper practices at certain of its health education segment campuses
relating to the determination of reported placement rates” and that it
had retained outside legal counsel to conduct an investigation. Following
this announcement, the Company’s stock price fell $3.36 per share, or
15.4 percent, to close at $18.51 on August 4, 2011, on unusually high
Then, on November 1, 2011, Career Education announced that its
outside counsel confirmed the existence of improper placement practices
at certain of the Company’s schools and, further, that only 13 of 49
Health Education and Art Design schools accredited by the agency ACICS
met the agency’s 65% minimum job placement rate standard. On the same
day, the Company revealed that its then-President and Chief Executive
Officer, defendant Gary E. McCullough, had resigned abruptly. In
reaction to these announcements, the price of Career Education stock
fell $7.63 per share, or 47.8 percent, to close at $8.32 on November 2,
2011, on extremely high trading volume.
About Lieff Cabraser
Cabraser Heimann Bernstein, LLP, with offices in San
Francisco, New York and Nashville, is a nationally recognized law firm
committed to advancing the rights of investors and promoting corporate
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs’ law firms in the nation. In
compiling the list, the National Law Journal examined recent
verdicts and settlements in addition to overall track records. Lieff
Cabraser is one of only two plaintiffs’ law firms in the United States
to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation
of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
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