Shareholder Class Action Filed Against Apollo Group, Inc. by the Law Firm of Schiffrin & Barroway, LLP
October 12 2004 - 9:13PM
PR Newswire (US)
Shareholder Class Action Filed Against Apollo Group, Inc. by the
Law Firm of Schiffrin & Barroway, LLP BALA CYNWYD, Pa., Oct. 12
/PRNewswire/ -- The following statement was issued today by the law
firm of Schiffrin & Barroway, LLP: Notice is hereby given that
a class action lawsuit was filed in the United States District
Court for the District of Arizona on behalf of all who purchased or
otherwise acquired securities of Apollo Group, Inc. (NASDAQ:APOL)
("Apollo" or the "Company") from March 12, 2004 through September
14, 2004, inclusive (the "Class Period"). If you wish to discuss
this action or have any questions concerning this notice or your
rights or interests with respect to these matters, please contact
Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J.
Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via
e-mail at . The complaint charges Apollo, Todd S. Nelson, Kenda B.
Gonzales, and Daniel E. Bachus with violations of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder. More specifically, the Complaint alleges
that the Company failed to disclose and misrepresented the
following material adverse facts which were known to defendants or
recklessly disregarded by them: (1) that the Company improperly
based recruiter's compensation on enrollment figures, in violation
of U.S. regulations that forbid schools whose students receive
federal financial aid from tying pay directly to enrollments; (2)
that as a consequence of the foregoing, defendants were able to
demonstrate dazzling growth at schools such as the University of
Phoenix, even though recruiters bolstered their numbers by signing
up unqualified students; and (3) that as a result of the illegal
practices, the Company's earnings and net income were materially
inflated at all relevant times. On September 15, 2004, the Wall
Street Journal published an article entitled "Will Apollo's Bad
Report Card Get Its Shares Grounded?" The article stated that
Apollo engaged in a "culture of duplicity" in which supervisors
improperly lavished money on sales employees for signing up scores
of new students, including those unable to cut it. This news
shocked the market. Shares of Apollo fell $1.41 per share, or 1.76
percent on September 15, 2004, to close at $78.68 per share.
Plaintiff seeks to recover damages on behalf of class members and
is represented by the law firm of Schiffrin & Barroway, which
prosecutes class actions in both state and federal courts
throughout the country. Schiffrin & Barroway is a driving force
behind corporate governance reform, and has recovered in excess of
a billion dollars on behalf of institutional and high net worth
individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online,
please visit http://www.sbclasslaw.com/ If you are a member of the
class described above, you may, not later than December 13, 2004,
move the Court to serve as lead plaintiff of the class, if you so
choose. A lead plaintiff is a representative party that acts 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. Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Schiffrin &
Barroway, or other counsel of your choice, to serve as your counsel
in this action. CONTACT: Schiffrin & Barroway, LLP Marc A.
Topaz, Esq. Darren J. Check, Esq. Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT:
Marc A. Topaz, Esq. or Darren J. Check, Esq., both of Schiffrin
& Barroway, +1-888-299-7706 or +1-610-667-7706, Web site:
http://www.sbclasslaw.com/
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