Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Career Education Corporation
January 25 2012 - 6:35PM
Business Wire
Glancy Binkow & Goldberg LLP announces that a class action
lawsuit has been filed in the United States District Court for the
Northern District of Illinois on behalf of purchasers of Career
Education Corporation (“CECO” or the “Company”) common stock
(NASDAQ:CECO) between January 1, 2009 and November 1, 2011,
inclusive (the “Class Period”), seeking to pursue remedies under
the Securities Exchange Act of 1934.
CECO operates colleges, schools and universities primarily in
the United States that provide educational services in
career-oriented disciplines. The Complaint alleges that defendants
misrepresented or failed to disclose material adverse facts about
the Company's business and financial condition, including that: (i)
CECO’s retention rates and employment or “placement” rates
following graduation were higher than they actually were; (ii) the
Company’s purported placement rates were achieved through an
improper course of conduct and a manipulative use of the term
“employment”; (iii) the Company reported inflated placement rates
to the Accrediting Counsel for Independent Colleges and Schools,
the Accrediting Commission of Career Schools and Colleges, and its
other accrediting agencies; and (iv), as a result of the foregoing,
defendants misrepresented the health and condition of the Company,
in particular its ability to continue to receive Title IV
Funding.
On May 17, 2011, CECO received a subpoena from the Attorney
General of the State of New York requesting documents pertaining to
student recruitment and admissions, employment outcomes, and
graduate placement rates, among other things. On August 3, 2011,
CECO announced it had identified improper practices at certain of
its schools related to the placement rates reported to
accreditation agencies, and had retained outside legal counsel to
conduct an investigation. Then, on November 1, 2011 the Company
announced that its outside counsel’s investigation confirmed the
existence of improper placement practices at certain of the
Company’s schools.
No class has yet been certified in the above action. Until a
class is certified, you are not represented by counsel unless you
retain one. If you purchased CECO common stock between January 1,
2009 and November 1, 2011, you have certain rights, and have until
March 13, 2012 to move for lead plaintiff status. To be a member of
the class you need not take any action at this time; you may retain
counsel of your choice or take no action and remain an absent class
member. 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 Michael Goldberg, Esquire, of Glancy
Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los
Angeles, California 90067, by telephone at (310) 201-9150 or Toll
Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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