An Apollo Group investor filed a lawsuit on behalf of those who purchased APOL shares between December 7, 2009 and August 3, 2010, over alleged Federal Securities Laws violations by Apollo Group, Inc. Meanwhile an investigation on behalf of current long term investors in Apollo Group, Inc. (NASDAQ:APOL), including those who purchased also prior to December 2009 and presently hold those APOL shares, over possible breaches of fiduciary duties by certain officers and directors of Apollo Group, Inc. was announced.

According to the complaint filed in the United States District Court for the District of Arizona the plaintiff alleges on behalf of those who purchased APOL shares between December 7, 2009 and August 3, 2010, that Apollo Group, Inc. issued between December 7, 2009 and August 3, 2010, a series of materially false and misleading statements related to its business and operations in violation of the Securities Exchange Act of 1934. The investigation on behalf of behalf of current long term investors in Apollo Group, Inc. (NASDAQ:APOL) seeks to determine whether certain officers and directors of Apollo Group breached their fiduciary duties in connection with the alleged securities laws violations.

On August 4, 2010, the Senate Health, Education, Labor, and Pensions Committee conducted a hearing on for-profit education firms, where Government Accountability Office representative, George Kutz, presented the findings of report GAO-10-948T, 'For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices.' The report detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff. According to this GAO study, the college personnel at schools may have encouraged applicants to falsify their financial aid forms to qualify for federal aid and pressured applicants to sign a contract for enrollment prior to allowing them to speak to a financial advisor.