CASES
Apollo Group, Inc. (2010)
Class Period: Feb 12, 2007 to Aug 3, 2010
Lead Plaintiff Deadline: Oct 15, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Apollo Group, Inc. (2010) (APOL) ("APOL" or the "Company") on behalf of all securities purchasers from December 7, 2009 through August 3, 2010, inclusive ("Class Period"), in the United States District Court of Arizona.
The complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings during the Class Period regarding APOL's operational performance and future growth projections, these statements were false because: (1) defendants had propped up the Company's results by fraudulently inducing students to enroll in APOL'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) APOL did not maintain adequate systems of internal operational or financial controls, which would have permitted APOL's reported operational statements and foreseeable growth prospects to be true, accurate or reliable.
It was only on August 3, 2010 that investors finally began to learn the truth about APOL after the United States General Accounting Office ("GAO") issued a report that concluded that for-profit educational institutions like APOL 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. Following these disclosures, shares of the Company declined precipitously over just a few trading days -- falling almost 10% between August 3 and August 5, 2010, on unusually high trading volume, thereby eradicating over $684.53 million of the Company's market capitalization in only four trading days.
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.