NEW YORK, April 24, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Apollo Education Group, Inc. ("Apollo" or the "Company") (Nasdaq:APOL) and certain of its officers. The class action, filed in United States District Court, District of Arizona, and docketed under 2:14-at-99904, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Apollo securities between October 19, 2011 and April 1, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Apollo securities during the Class Period, you have until June 23, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Apollo is a publicly traded, for-profit education company headquartered in Phoenix, Arizona. Apollo employs approximately 15,000 non-faculty employees, and approximately 29,000 faculty members, and enrolls over 250,000 students across its online and in person course offerings. The Company, through its subsidiaries, offers associate, bachelor, masters and doctorate degrees to students around the world in over 100 fields. The Company's largest reporting segment, The University of Phoenix, generates more than $4 billion in revenue.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) defendants manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011; (ii) defendants' predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011; and (iii) the Company engaged in a number of practices, including loan forbearance programs, in order to create the appearance that the Company was in compliance with relevant government regulations.
On July 30, 2012, Senator Tom Harkin, chairman of the Health, Education, Labor and Pensions Committee, completed a two-year investigation of the for-profit college industry, and issued a report (the, "Harkin Report") containing troubling statistics and findings regarding the for profit college industry, and specifically about Apollo.
After the Harkin Report was published, the Company's shares fell 4.1% or $1.17, to close at $27.22 on July 30, 2012.
On April 1, 2014, the Company disclosed that the Department of Education was conducting an investigation into the company, and that the department had subpoenaed documents and communications related to student recruitment, attendance, completion, placement, defaults on loans, along with information on other corporate and financial matters.
On this news, Apollo shares declined $3.10 per share, or over 8.8%, to close at $32.06 per share on April 2, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.