Charles H. Johnson & Associates Announces Filing of Securities Class Action Against Education Management Corporation

MINNEAPOLIS, Aug. 25, 2010 (GLOBE NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Western District of Pennsylvania on behalf of purchasers of Education Management Corporation ("EMC" or the "Company") (Nasdaq:EDMC) publicly traded securities during the period October 2, 2009 through August 3, 2010 (the "Class Period").

If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before October 11, 2010. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.

The Complaint alleges that Defendants' extensive positive statements in press releases and SEC filings during the Class Period regarding the Company's operational performance and future growth projections were false because: 1) Defendants had propped up the Company's results by fraudulently inducing students to enroll in EMC'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) EMC did not maintain adequate systems of internal operational or financial controls, which would have permitted EMC's reported operational statements and foreseeable growth prospects to be true, accurate or reliable.

It was only on August 3, 2010 when a report by the United States General Accounting Office ("GAO") was leaked that investors finally began to learn the truth about EMC. The August 4, 2010 GAO report concluded that for-profit educational institutions like EMC 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, EMC's common stock fell 18% in several trading days as this news reached the market.

If you purchased Education Management Corporation stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact: