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