LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that all purchasers of the common stock of Career Education Corporation (“CECO” or the “Company”) (NASDAQ:CECO) between January 1, 2009 and November 1, 2011, inclusive (the “Class Period”) have until March 13, 2012 to file a motion with the Court to be appointed as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the Northern District of Illinois.
CECO operates colleges, schools and universities, primarily in the United States, that provide educational services in career-oriented disciplines. The Complaint alleges that defendants misrepresented or failed to disclose material adverse facts about the Company's business and financial condition, including that: (i) CECO’s reported retention rates and employment or “placement” rates following graduation were higher than they actually were; (ii) the Company’s purported placement rates were achieved through an improper course of conduct and a manipulative use of the term “employment”; (iii) the Company reported inflated placement rates to the Accrediting Counsel for Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and its other accrediting agencies; and (iv), as a result of the foregoing, defendants misrepresented the health and condition of the Company, in particular 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 documents pertaining to student recruitment and admissions, employment outcomes and graduate placement rates, among other things. On August 3, 2011, CECO announced it had identified improper practices at certain of its schools related to the placement rates reported to accreditation agencies, and had retained outside legal counsel to conduct an investigation. Then, on November 1, 2011 the Company announced that its outside counsel’s investigation confirmed the existence of improper placement practices at certain of the Company’s schools.
Any person or group who purchased CECO common stock between January 1, 2009 and November 1, 2011 and suffered a loss may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than March 13, 2012. To be a member of the class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent class member. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
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