Robbins Umeda LLP Announces an Investigation of Career Education Corporation
August 26 2011 - 11:45AM
Business Wire
Robbins Umeda LLP, a shareholder rights litigation firm, has
commenced an investigation into possible breaches of fiduciary duty
and other violations of the law by certain officers and directors
at Career Education Corporation ("CEC") (NASDAQ: CECO).
Robbins Umeda LLP's investigation focuses on whether the
directors and officers of CEC harmed the company by allowing
post-educational job placement rates to be improperly computed and
then misleadingly conveyed to potential student applicants. On May
24, 2011, CEC issued a Form 8-K announcing that it had received a
subpoena from the New York Attorney General's Office calling on CEC
to produce documents related to the company's business and
marketing practices. In addition, the company's recently released
second quarter 2011 financial results contained the revelation that
an internal investigation at CEC had uncovered "improper practices"
at certain of the company's campuses. As a result, CEC retained
legal counsel to investigate the prevalence of these questionable
practices nationwide.
Since these allegations have surfaced, CEC has increasingly
become the focus of costly public and legal scrutiny, and shares of
the company's stock have continued to decline in value. After
trading as high as $22.45 on August 2, 2011, shares of CEC opened
on August 23, 2011 at just $14.99 per share.
One course of conduct that may be appropriate for shareholders
of CEC is to file a derivative action to hold the officers and
directors that damaged CEC accountable. Remedies commonly sought in
derivative actions include corporate governance reforms designed to
prevent future misconduct, removal of officers or directors whose
misconduct injured the corporation, and monetary payments in the
form of damages and disgorgement of ill-gotten gains.
If you invested in CEC and would like more information about
your shareholder rights, please contact attorney Gregory E. Del
Gaizo at 800-350-6003 or via the shareholder information form on
our website.
Robbins Umeda LLP represents individual and institutional
shareholders in derivative, direct, and class action lawsuits. The
law firm's skilled litigation teams include former federal
prosecutors, former defense counsel from top multinational
corporate law firms, and career shareholder rights attorneys. For
more information, please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/career-education-corporation/
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