DOW JONES NEWSWIRES 
 

Apollo Group Inc. (APOL) said a federal appeals court reversed a lower court's ruling in favor of the company in securities litigation arising out of a 2003 review by the U.S. Department of Education.

The Court of Appeals for the Ninth Circuit ordered the lower court to enter a judgment against Apollo according to a 2008 jury verdict, which awarded the plaintiffs about $280 million.

General Counsel P. Robert Moya said the company will "explore all available options for seeking further review of the Ninth Circuit's decision."

Shareholders sued Apollo in October 2004, accusing the company and two of its executives of withholding a Department of Education report that criticized the recruitment policies at the University of Phoenix, one of Apollo's schools. The report accused the school of paying enrollment counselors based solely on the recruiters' success in enrolling students, a violation of federal regulations.

In September 2004, the school agreed to pay the Department of Education $9.8 million to settle the matter, and the report was released to the public.

Apollo's shares closed at $46.33 and were inactive after hours. The stock was down 24% this year as of the close.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com

 
 
Apollo Education Group, Inc. (NASDAQ:APOL)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Apollo Education Group, Inc. Charts.
Apollo Education Group, Inc. (NASDAQ:APOL)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Apollo Education Group, Inc. Charts.