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Bridgepoint Education Inc (NYSE:BPI) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties

  • if you are a current long-term stockholder in shares of Bridgepoint Education Inc (NYSE:BPI), you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Bridgepoint Education, Inc.
Security
NYSE: BPI

Case Name
Bridgepoint Education Shareholder Derivative Lawsuit 07/24/2012
Type of Lawsuit
Stockholder Derivative Action
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Summary

Sept. 14, 2012 (Shareholders Foundation) -- A current investor in shares of Bridgepoint Education Inc (NYSE:BPI) filed a lawsuit against directors of Bridgepoint Education Inc alleging breaches of fiduciary duties in connection with certain allegedly false and misleading statements regarding Ashford University’s accreditation.
On July 9, 2012, Bridgepoint Education Inc disclosed in a filing with the U.S. Securities and Exchange Commission that its Ashford University received official notice from the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges ( WASC ) that WASC has acted to deny initial accreditation to the institution and to permit the institution to reapply for accreditation with a single special visit to occur as early as spring 2013. Bridgepoint Education Inc said that WASC found that Ashford University had not yet demonstrated substantial compliance with certain of the WASC Standards for Accreditation, as would be required for initial accreditation.

The plaintiff alleges that “it is no surprise that the culture of lawlessness within Bridgepoint caught the attention of the WASC” and claims that the defendants, despite being advised that Ashford’s future accreditation was at risk by the Spring of 2011, allegedly conceal his material information which they allegedly know would directly affect Bridgepoint Education’s future business prospects.

The plaintiff says the first improper statement was disseminated in May 2011 and in July 2012 the truth was revealed.

Following the announcement in July 2012 shares of Bridgepoint Education Inc (NYSE:BPI) fell from $21.50 per share on July 6, 202 to as low as $8.40 per share on July 26, 2012.

The plaintiff says that as a result of the defendants’ wrongdoing Bridgepoint Education is now subject of multiple federal securities class action lawsuits that pose the risk of hundreds of millions of dollars in damages to the company. Furthermore, so the plaintiff, certain defendants did not let their own wealth suffer, while allowing the Bridgepoint Education to lose over half of its value. The plaintiff seeks to repair the harm that certain defendants caused the company.

Shares of Bridgepoint Education Inc (NYSE:BPI) closed on September 14, 2012, at $11.26 per share, down from its 52 week High of $27.26 per share.