NEW YORK, May 15, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Delaware on behalf of those who acquired Grand Canyon Education, Inc. (“Grand Canyon” or the “Company”) (NASDAQ: LOPE) securities during the period from January 5, 2018 through January 27, 2020 (the “Class Period”). Investors have until July 13, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company inflated Grand Canyon’s financial results by using Grand Canyon University (“GCU”) as an off-balance-sheet entity to which Grand Canyon was able to funnel expenses and costs in exchange for a disproportionate amount of revenue. Defendants repeatedly made false and misleading statements to investors describing GCU as a “non-profit” and “independent” institution and misstating Grand Canyon’s role as a third-party provider of education services.
On January 28, 2020, the investment analyst Citron Research issued a short report on Grand Canyon Education entitled, “GCE, the Educational Enron.” The report alleged that Grand Canyon was violating the federal securities laws by using a “captive non-reporting subsidiary to hide liabilities” and “artificially inflate the [company’s] stock price.”
On this news, the price of Grand Canyon shares declined by $7.43, or 8.12%, to close at $84.07 per share on January 28, 2020.
If you acquired Grand Canyon securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
(212) 371-6600
investigations@kmllp.com
www.kmllp.com