The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of purchasers of the common stock of Career Education Corporation (“Career Education” or the “Company”) (NasdaqGS: CECO) between January 1, 2009 and November 1, 2011, inclusive (the “Class Period”).

If you purchased Career Education common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 13, 2012.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff.  You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Career Education shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.

Background on the Career Education Securities Class Litigation

The action is brought against Career Education and certain of its senior officers for violations of the Securities Exchange Act of 1934.  Headquartered in Schaumburg, Illinois, Career Education is a for-profit education company that operates more than 90 campuses in the United States, France, Italy, the United Kingdom, and Monaco.

The complaint alleges that during the Class Period, defendants misrepresented and omitted material information about Career Education’s business and financial condition.  Specifically, defendants failed to disclose that Career Education improperly reported false and inflated job placement rates of its students after graduation to accrediting agencies so that its schools could obtain the necessary accreditations to receive lucrative funding through federal and state student financial aid and loan programs.

On May 17, 2011, Career Education 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.  After disclosing the subpoena on May 24, 2011, the Company’s stock price fell 1.2 percent to close at $21.69 on May 25, 2011. 

On August 3, 2011, Career Education announced that it had “identified improper practices at certain of its health education segment campuses relating to the determination of reported placement rates” and that it had retained outside legal counsel to conduct an investigation.  Following this announcement, the Company’s stock price fell $3.36 per share, or 15.4 percent, to close at $18.51 on August 4, 2011, on unusually high trading volume.

Then, on November 1, 2011, Career Education announced that its outside counsel confirmed the existence of improper placement practices at certain of the Company’s schools and, further, that only 13 of 49 Health Education and Art & Design schools accredited by the agency ACICS met the agency’s 65% minimum job placement rate standard.  On the same day, the Company revealed that its then-President and Chief Executive Officer, defendant Gary E. McCullough, had resigned abruptly.  In reaction to these announcements, the price of Career Education stock fell $7.63 per share, or 47.8 percent, to close at $8.32 on November 2, 2011, on extremely high trading volume.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation.  In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.

For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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