WILMINGTON, Del., July 29, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of K12 Inc. (NYSE:LRN)?
- Did you purchase your shares between November 7, 2013 and October 27, 2015, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of K12 Inc. (“K12” or the “Company”) (NYSE:LRN) between November 7, 2013 and October 27, 2015, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of K12 during the Class Period, or purchased shares prior to the Class Period and still hold K12, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/k12-inc-lrn-lawsuit.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) that K12 was publishing misleading advertisements about students’ academic progress, parent satisfaction, their graduates’ eligibility for University of California and California State University admission, class sizes, the individualized and flexible nature of K12’s instruction, hidden costs, and the quality of the materials provided to students; (2) that K12 submitted inflated student attendance numbers to the California Department of Education in order to collect additional funding; (3) that, as a result of the aforementioned practices, the Company was open to potential civil and criminal liability; (4) that the Company would likely be forced to end these practices, which would have a negative impact on K12’s operations and prospects, and/or that K12 was, in fact, ending the practices; and (5) that, as a result of the foregoing, Defendants’ statements about K12’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on October 27, 2015, K12 issued a press release reporting disappointing financial results for the first quarter fiscal 2016. Additionally, after the market closed that same day, K12 filed its Form 10-Q with the SEC for the fiscal quarter ended September 30, 2015. Therein, the Company disclosed that it received a subpoena from the Attorney General of the State of California, Bureau of Children’s Justice in connection with an investigation styled “In the Matter of the Investigation of: For-Profit Virtual Schools.”
On this news, shares of K12 declined over 5%, closing at $10.25 per share on October 27, 2015, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than September 19, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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