PHILADELPHIA, April 8, 2004 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. has filed a securities fraud class action complaint in the United States District Court for the District of Columbia against ITT Educational Services ("ITT Educational"), on behalf of purchasers of publicly traded securities of ITT Educational Services (NYSE:ESI) between April 17, 2003 and February 24, 2004 inclusive (the "Class Period").
The complaint charges that ITT Educational, Rene R. Champagne, Omer E. Waddles and Kevin M. Modany violated Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to regarding ITT Educational's financial performance that acted to artificially inflate the price of the Company's stock. The complaint alleges that during the Class Period, defendants' representations concerning the Company's financial performance, made in the Company's public filings and press releases, were materially false and misleading by failing to disclose, inter alia: i) that the Company systematically falsified records relating to enrollment, graduation and job placement rates; ii) a material portion of the Company's reported revenues were derived through fraudulent business practices; iii) the Company's reported results did not accurately portray the Company's operations because a material portion of those results were attributable to prohibited practices; and iv) that the Company's results were not prepared and reported in accordance with GAAP and did not fairly present its actual financial results or condition.
On February 25, 2004, before the market opened, the Company issued a press release announcing that it had been served with a search warrant and related grand jury subpoenas at its corporate headquarters and several of its schools. In reaction to this announcement, the price of ITT Educational common stock plummeted, falling 33%, or $18.90 per share, on extremely heavy trading volume.
If you purchased ITT Educational Services during the Class Period of April 17, 2003 through February 24, 2004 inclusive, you may, no later than April 26, 2004, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in ITT Educational during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. is a Philadelphia law firm, consisting of over 60 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing institutional and other investor plaintiffs in class action securities litigation and has played lead roles in major cases over the past 30 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in such leading securities actions as Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken, and IKON Office Solutions. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous court. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Office Solutions Securities Litigation. Civil Action No. 98-4286 (E.D.Pa.) (partial settlement for $111 million approved May, 2000).
". . . (Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases . . . In 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here . . . I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased ITT Educational Services stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire Glen Abramson, Esquire Diane R. Werwinski, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca