CHICAGO, Dec. 18, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Illinois on behalf of purchasers of the securities of Career Education Corporation (Nasdaq:CECO) ("CEC" or the "Company") between January 28, 2003 and December 2, 2003, inclusive ("Class Period").
It has been alleged that John M. Larson, the Company's Chairman, President and Chief Executive Officer, and Patrick K. Pesch, its Executive Vice President and Chief Financial Officer, ("Individual Defendants") and CEC violated the federal securities laws by issuing a series of materially false and misleading statements to the market. These misstatements have had the effect of artificially inflating the market price of CEC's securities.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Louis A. Kessler at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to CEC.
Specifically, the Complaint alleges that throughout the Class Period, the Company failed to disclose that: (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. On December 3, 2003 Bloomberg News reported that a former registrar of Brooks Institute of Photography in Santa Barbara California had filed a Complaint that alleged that the school falsified student records to ensure that it passed inspections by accreditation auditors and to boost enrollment. This came only weeks after allegations surfaced in a local New Jersey newspaper that another CEC school, Gibbs College, regularly graduated students who did not complete required courses or attend mandatory internships. In reaction, on December 3, 2003 the price of CEC stock plunged nearly 28% from the previous day's close. The Individual Defendants are alleged to have sold over $23 million of their own stock at artificially inflated prices during the Class Period.
If you purchased CEC securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than February 9, 2004.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca