NEW YORK, Feb. 16, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP, the Court designated lead counsel in a class action against Career Education Corp. ("Career Education" or the "Company") (Nasdaq:CECO) on behalf of purchasers of Career Education securities between January 8, 2003 and December 2, 2003, inclusive, (the "Class Period") announces that it is continuing its investigation of the Company. The lawsuit was filed against Career Education, John M. Larson and Patrick K. Pesch ("Defendants"). On February 11, 2005, the Hon. Judge Joan H. Lefkow granted Defendants' motion to dismiss the Amended Consolidated Complaint for failure to satisfy the pleading requirements. However, Plaintiffs have been given leave to file a second amended complaint, adding more specific and relevant information by March 11, 2005.
Lead Plaintiff and Counsel believe that the claims asserted are strong and valid and are continuing their in-depth investigation of the Company. Since the filing of the initial complaint, dozens of additional former employees and students have come forward detailing fraudulent practices and to attest to the merits of the asserted claims. In addition, the Securities & Exchange Commission ("SEC"), Department of Justice and the United States Postal Inspectors have formal investigations ongoing. In addition, a recent "60-Minutes" expose of the Company highlighted numerous aspects of fraudulent practices asserted in the existing complaint. For example, in that January 30, 2005 expose, an admissions officer at the Company's Katherine Gibbs School told the show's associate producer, posing incognito, that 89% of students finish the program, when a U.S. Department of Education report found that only 29% graduated.
If you previously worked for Career Education at the corporate level, or any of its post secondary institutions in any capacity and know of improper practices, we would like your assistance. Please call toll free: 800-321-0476.
Lead Plaintiff is represented by Goodkind Labaton Rudoff & Sucharow LLP, one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2004 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients last two years.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca