CASES
DeVry, Inc.
Class Period: Oct 25, 2007 to Aug 13, 2010
Lead Plaintiff Deadline: Dec 31, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against DeVry, Inc. (DV) ("DeVry" or the "Company") on behalf of all securities purchasers from October 25, 2007 through August 13, 2010, inclusive ("Class Period"), in the United States District Court for the Northern District of Illinois.
The complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding DeVry's business and financial results. Specifically, defendants failed to disclose that: (i) the Company had engaged in improper and deceptive recruiting and financial aid lending practices and, due to the government's scrutiny into the for-profit education sector, the Company would be unable to continue these practices in the future; (ii) the Company failed to maintain proper internal controls; (iii) many of the Company's programs were in jeopardy of losing their eligibility for federal financial aid; and (iv) as a result of the foregoing, defendants' statements regarding the Company's financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.
On August 13, 2010, after the market closed, the U.S. Department of Education released data on federal student-loan repayment rates at the nation's colleges and universities. The data showed that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges. Specifically, the data showed that the repayment rate at DeVry was just 38%. On this news, the price of DeVry stock dropped 8.76%, or $3.74 per share, from a closing price of $42.71 per share on August 13, 2010 to a closing price of $38.97 per share on August 16, 2010, the following trading day, on a 234% increase in 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.