San Diego, Aug 05, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Bridgepoint Education, Inc. (NYSE:BPI) over possible Violations of Securities Laws by Bridgepoint Education and certain of its officers and directors was announced.

The investigation by a law firm focuses on possible NYSE:BPI shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether Bridgepoint Education, Inc. or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.

Bridgepoint Education, Inc has reported some enormous financial performances over the past years. It reported that its annual Total Revenue skyrocketed from as little as $85.71million to $713.23million in 2010 and its Net Income surged from $3.29million to $127.58million.

Specifically, the investigation focuses on certain insider transactions that happened just before the recent substantial stock decline. Shares of Bridgepoint Education, Inc. (Public, NYSE:BPI) fell from as high as $30.50 on July 22, 2011 to as low as $19.38 during August 5ths trading.

NYSE BPI began its downward spiral on July 25th, after Bridgepoint Educations largest shareholder, Warburg Pincus Private Equity VIII, L.P.,, filed to sell its stake in Bridgepoint Education. According to regulatory filings Warburg Pincus owns about 34.6 million shares, or 66.1% of Bridgepoint Educations shares.

However, right before BPI shares began its downfall beginning on July 25, 2011, the CEO of Bridgepoint Education, Inc sold on July 22 and July 21 a total of 67,466 shares for a total of more than $2million. In fact, the Bridgepoint CEO sold just in July 2011 as much as 188,878 BPI shares for a total of $5,309,912 and Mr. Andrew Clark has so far this year alone sold as much as 569,412 shares for a total of $12.81million.

Then on August 2, 2011 Bridgepoint Education( BPI) had announced its second quarter results for the three months ended June 30, 2011. Among other things, Bridgepoint Education updated its guidance and expects revenue to be between $886.5 million and $901.5 million, net income to be between $148.3 million and $155.2 million, and fully diluted earnings per common share is expected to be between $ 2.56 and $2.68.
On August 1, 2011, CEO Andrew Clark sold 47,940 BPI shares for $1.18million

Bridgepoint Education has been the center of attention of the Health, Education, Labor and Pensions Committee of the U.S. Senate for its high drop-out rate. In March 2011 the U.S. Senate Committee on Health, Education, Labor and Pensions held a hearing regarding Bridgepoint Education, Inc. and Ashford University entitled Bridgepoint Education, Inc.: A Case Study in For-Profit Education and Oversight.

In addition Bridgepoint and its Universities face a series of legal challenges. In January Bridgepoint Education, along with its Ashford University and University of the Rockies, were named as defendants in a lawsuit filed by students alleging that defendants engaged in improper, fraudulent and illegal behavior in their efforts to recruit and retain students. In February, April, and in May 2011, Bridgepoint Education also received a copies of lawsuits filed on behalf of certain employees.

Additionally in February, Bridgepoint Educations Ashford University received from the Attorney General of the State of Iowa a Civil Investigative Demand and Notice of Intent to Proceed relating to the Attorney General's investigation of whether certain of the university's business practices comply with Iowa consumer laws and in May Bridgepoint Education received a subpoena from the Attorney General of the State of New York relating to the Attorney General's investigation of whether Bridgepoint Education and its academic institutions have complied with certain New York state consumer protection, securities and finance laws.