APOL Apollo Education Grp., Inc.

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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