CASES
Lincoln Educational Services, Inc. (2010)
Class Period: Mar 3, 2010 to Aug 4, 2010
Lead Plaintiff Deadline: Oct 15, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Lincoln Educational Services Corp. (2010) (LINC) ("LINC" or the "Company") on behalf of all securities purchasers from March 3, 2010 through August 5, 2010, inclusive ("Class Period"), in the United States District Court of New Jersey.
The complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings during the Class Period regarding the Company's operational performance and future growth projections, including predictable revenue growth of between 13% and 15% for 2010, these statements were false because: (1) defendants had propped up the Company's results by fraudulently inducing students to enroll in LINC's scholastic and educational programs and engaged in other manipulative recruiting tactics; (2) defendants had materially overstated the Company's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; and (3) LINC did not maintain adequate systems of internal operational or financial controls, which would have permitted LINC's reported operational statements and foreseeable growth prospects to be true, accurate or reliable.
The complaint alleges that it was only on August 5, 2010 that investors finally began to learn the truth about LINC after the United States General Accounting Office ("GAO") issued a report that concluded that for-profit educational institutions like LINC had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of such education. Allegedly, following these disclosures, shares of the Company collapsed -- falling over $4.30, or 20% in a single trading day, on unusually high trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.