Cauley Geller Announces Class Action Lawsuit Against Career Education Corporation on Behalf of Investors
December 11 2003 - 9:29PM
PR Newswire (US)
Cauley Geller Announces Class Action Lawsuit Against Career
Education Corporation on Behalf of Investors NEW YORK, Dec. 11
/PRNewswire/ -- The Law Firm of Cauley Geller Bowman & Rudman,
LLP announced today 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
("Career Education" or the "Company") common stock during the
period between January 28, 2003 and December 2, 2003, inclusive
(the "Class Period"). A copy of the complaint filed in this action
is available from the Court, or can be viewed on the firm's website
at
http://www.cauleygeller.com/show_case.asp?ccode=207&pcode=10&pp=4.
The complaint charges Career Education, John M. Larson, Patrick K.
Pesch with violations 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 defendants' statements
made during the Class Period were materially false and misleading
because they failed to disclose and/or misrepresented the following
adverse facts, among others: (1) that the Company's "record"
financial growth was a product of inflated student enrollment,
retention, and graduation rates procured through the falsification
of such records; (2) that student records were falsified in order
to show a higher rate of enrollment, student retention, and
graduation so that the Company would qualify for state and federal
funding; (3) that Company, in order to procure its "record"
financial results, forced its employees to falsify student records;
and (4) that the Company's earning and net income were materially
inflated and in violation of Generally Accepted Accounting
Principles ("GAAP") because the Company's financial results were
derived from the defendants' illegal practices. The truth behind
the Company's "record" growth during the Class Period began to
emerge on November 11, 2003 when The Record, a Bergen County, New
Jersey newspaper, reported that a former director of Gibbs College,
a school owned by the defendants, had filed a lawsuit against the
Company. The former director accused the Company of falsifying
student records in order to show a high rate of student retention
and graduation, and to qualify for state and federal funding. On
news of this, the Company's stock fell more than 13% or $7.10 per
share on November 17, 2003 to close at $45.81. Similarly on
December 3, 2003, The Santa Barbara News-Press reported that
another former employee at a school owned by the defendants had
filed another lawsuit wherein she claimed that "officials at the
school acted illegally and improperly to inflate enrollment and
boost the bottom line." The former employee also alleged that
"[m]any staff members have been asked by management to commit
forgery, fraud, perjury or whatever else is necessary to pass audit
inspections." On news of this, shares of Career Education fell
nearly 28% or $15.28 per share to close at $39.48 per share on
December 3, 2003. If you bought Career Education common stock
between January 28, 2003 and December 2, 2003, inclusive, and you
wish to serve as lead plaintiff, you must move the Court no later
than February 9, 2004.. If you are a member of this class, you can
join this class action online at
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1. Any
member of the purported class may move the Court to serve as lead
plaintiff through Cauley Geller or other counsel of their choice,
or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and
consumers in class action and corporate governance litigation. It
is one of the country's premiere firms in the area of securities
fraud, with in-house finance and forensic accounting specialists
and extensive trial experience. Since its founding, Cauley Geller
has recovered in excess of two billion dollars on behalf of
aggrieved shareholders. The firm maintains offices in Boca Raton,
Little Rock and New York. If you have any questions about how you
may be able to recover for your losses, or if you would like to
consider serving as one of the lead plaintiffs in this lawsuit, you
are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.cauleygeller.com/. Contact: CAULEY GELLER
BOWMAN & RUDMAN, LLP Samuel H. Rudman, Esq. or David A.
Rosenfeld, Esq. Client Relations Department: Jackie Addison,
Heather Gann or Chandra West P.O. Box 25438 Little Rock, AR
72221-5438 Toll Free: 1-888-551-9944 Fax: 1-501-312-8505 E-mail:
DATASOURCE: Cauley Geller Bowman & Rudman, LLP CONTACT: Samuel
H. Rudman, Esq or David A. Rosenfeld, Esq., both of Cauley Geller
Bowman & Rudman, LLP, +1-631-367-7100 Web site:
http://www.cauleygeller.com/
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