SAN FRANCISCO, July 07, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds DeVry Education Group Inc. (NYSE:DV) investors of the July 12, 2016 Lead Plaintiff Deadline in the securities class action filed in the United States District Court for the Northern District of Illinois.
If you purchased shares of DeVry between February 4, 2011 and January 27, 2016 and suffered $200,000 or more in losses contact Hagens Berman Sobol Shapiro LLP partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing DV@hbsslaw.com or visiting https://www.hbsslaw.com/cases/DV.
The litigation concerns Defendants’ representations about its graduates’ employment and income, but the U.S. Department of Education has found that such representations were unsubstantiated and unlawful.
More specifically, Defendants recruited students based on public statements that approximately 90% of DeVry graduates who were actively seeking employment landed or obtained new jobs in their field of study within six months of graduation (90% claims). Defendants also recruited based on public statements that students graduating with a bachelor’s degree from DeVry graduates earned more than similar graduates from other colleges (“higher income claims”).
On January 27, 2016, the U.S. Department of Education published its “Notice of Intent to Limit” finding DeVry is unable to substantiate the truthfulness of its statements about graduate employment rates as required by federal law. The same day, the U.S. Federal Trade Commission filed a lawsuit against DeVry alleging DeVry’s 90% claims and higher income claims violated the Federal Trade Commission Act, which prohibits unfair or deceptive practices.
On this news, the price of DeVry’s common stock fell 15% to close at $20.09 per share that day.
Since then, DeVry’s President and CEO abruptly resigned from his positions and from DeVry’s board effective May 24, 2016. Its CFO resigned effective June 30, 2016.
“DeVry’s 90% and higher income claims starkly contrast with its inability to substantiate them, all to its shareholders’ detriment, suggest fraud here,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding DeVry should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email DV@hbsslaw.com.
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Hagens Berman, a national investor-rights law firm, is headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.