Update (Jan. 24, 2012) -- The judge in the lawsuit by the current long term investors against certain directors of Apollo Group over alleged breaches of fiducayr duties refused to grant the defendants motion to stay the lawsuit while the Apollo Group's Special Committee's own investigation. The judge also refused to stay discovery in the lawsuit against directors until the motions to dismiss are decided. Both decisions by the judge are favorable for the lawsuit by current long term investors.

San Diego, Dec. 10, 2010 (Shareholders Foundation) -- A lawsuit by a current long term investor in NASDAQ:APOL stock was filed against certain directors and officers of Apollo Group, Inc. over alleged breaches of fiduciary duties in connection with certain business practices at certain of its for-profit colleges

According to the complaint the plaintiff alleges that certain Apollo Group’s officers and directors also caused Apollo Group, Inc to issue a series of allegedly materially false and misleading statements that perpetuated the illusion of Apollo Group’s purportedly strong business model and financial performance, but concealed from shareholders that Apollo Group’s enrollment and revenue growth were due to deceptive marketing practices, and falsely attributed them to the purported quality of Apollo Group’s services. T

he plaintiff says in reality a large numbers of Apollo Group’s students were unsuited for its scholastic programs and eventually withdrew from school, and most of these ill-qualified students had Title IV loans that were unable to repay those loans after dropping out.

The plaintiff further alleges that Apollo Group routinely attempted to enroll homeless individuals and improperly compensated its enrollment personnel. The plaintiff alleges that while certain Apollo Group’s officers and directors were making alleged false and misleading statements, certain insiders sold over $470 million of their privately held Apollo Group shares at artificially inflated prices.