DALLAS, Jan. 27, 2012 /PRNewswire/ -- Former United
States Securities and Exchange Commission attorney Willie Briscoe,
founder of The Briscoe Law Firm, PLLC, and the securities
litigation firm of Powers Taylor, LLP announce that the firms are
investigating legal claims against the officers and Board of
Directors of Career Education Corporation ("Career Education" or
"CECO") (NASDAQ: CECO) related to potential securities violations
between January 1, 2009 and
November 1, 2011 (the "Class
Period").
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If you are an affected investor and you want to learn more about
the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free
(877) 728-9607, via e-mail at patrick@powerstaylor.com, or
Willie Briscoe at The Briscoe Law
Firm, PLLC, (214) 706-9314, or via email at
WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to
you.
In a recently filed federal class action complaint, Career
Education and certain of its officers and directors were charged
with violating the Securities Exchange Act of 1934.
Specifically, the complaint alleges that various public statements
by the defendants during the Class Period were each materially
false and misleading in that defendants knew or recklessly
disregarded that: (i) defendants represented that CECO's retention
rates and employment, or "placement" rates, following graduation
were higher than they actually were; (b) Career Education's
purported placement rates were achieved through an improper course
of conduct and a manipulative use of the term "employment"; and (c)
Career Education 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. As a result, it is alleged that
defendants misrepresented the financial condition of the company,
including its ability to continue to receive Title IV funding, to
the investing public. Further, on May 17, 2011, Career
Education revealed that it had received a subpoena from the New
York Attorney General seeking documents in connection with the New
York AG's investigation of whether CECO and certain of its schools
complied with New York consumer protection and securities
laws. On November 2, 2011, the day after Career Education
announced its quarterly earnings reports confirming that its
retained outside counsel had identified certain placements that
lacked sufficient supporting documentation, CECO shares plummeted
nearly 50% to close at $8.32 per share from the previous day's
close of $15.95 per share on very heavy trading volume.
The Briscoe Law Firm, PLLC is a full service business
litigation, commercial transaction, and public advocacy firm with
more than 20 years of experience in complex litigation and
transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that
handles a variety of complex business litigation matters, including
claims of investor and stockholder fraud, shareholder oppression,
shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP