NEW YORK, Jan. 26, 2012 (GLOBE NEWSWIRE) -- Newman Ferrara LLP (www.nfllp.com) announced today that a securities class action complaint has been filed on behalf of those purchasing common stock of Career Education Corporation ("CECO" or the "Company") (Nasdaq:CECO) between the dates of January 1, 2009 and November 1, 2011, inclusive (the "Class Period") in the United States District Court for the Northern District of Illinois.
No class has yet been certified in the above action. If you wish to serve as lead plaintiff, you must apply to be appointed no later than March 13, 2012. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages to serve as a lead plaintiff. If you would like to discuss this action, the lead plaintiff process, or have any questions concerning this notice, please contact plaintiff's counsel, Jeffrey M. Norton at (212) 619-5400 or by email at jnorton@nfllp.com.
CECO runs schools and universities in the United States that help gives career-oriented educational services in certain career-oriented fields.
The Complaint specifically alleges that CECO misrepresented and/or neglected to disclose material adverse facts about the state of the Company's business and financial situation. These claims include, but are not limited to: (1) that CECO's retention rates and employment or placement rates after graduation were greatly inflated, (2) that CECO's placement and employment rates were based on a skewed definition of the term "employment," (3) that CECO's inflated employment and placement rates were reported to various accrediting agencies, such as the Accrediting Counsel of Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and (4) that as a result of the aforementioned, CECO misrepresented the financial status and health of the Company, especially in regard to its ability to continue to receive Title IV funding. On May 17, 2011, CECO received a subpoena from the Attorney General of the State of New York requesting pertinent documents regarding its employment and placement statistics. On August 3, 2011, CECO announced it had found improper practices at certain schools in relation to these statistics, and had retained legal counsel. Later, on November 1, 2011, the Company confirmed the existence of improper practices in relation to improper placement practices.
With a varied legal practice based in New York City, Newman Ferrara attorneys specializes in complex commercial and multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability, civil rights litigation and real estate. Newman Ferrara serves as lead counsel in numerous class actions and has recovered substantial sums for its clients.
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