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DeVry Inc. Long Term Investor Lawsuit Against Certain Directors And Officers Filed

  • If you are a current long term investor in common stock of DeVry Inc. (NYSE:DV), you may have certain options. Please 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
DeVry Inc.
Security
NYSE: DV

Case Name
DeVry Shareholder Derivative Action 01/06/2011
Type of Lawsuit
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Summary

January 6, 2011 - A current investor in DeVry shares filed a lawsuit against certain directors and officers of DeVry Inc. over alleged breaches of fiduciary duties. The lawsuit follow a lawsuit by investors in DV shares on behalf of purchasers of the common stock of DeVry Inc. (NYSE:DV) between October 25, 2007 and August 13, 2010 against DeVry Inc over alleged securities laws violations.

According to the complaint the plaintiff that certain current and/or former members of DeVRy, Inc’s board of directors and executive officers breached their fiduciary duties. The plaintiff alleges DeVry propped up its share price by concealing its deceptive and illegal recruiting of students and financial aid practices, and its market cap sank from $5.2 billion to $2.8 after Congress found out. The lawsuit follows a lawsuit on behalf of investors who purchased DV shares between October 25, 2007 and August 13, 2010.

According to this complaint filed the plaintiff alleges that DeVry Inc. violated the Securities Exchange Act of 1934 by issuing between October 25, 2007 and August 13, 2010 materially false and misleading statements regarding DeVry’s business and financial results. The lawsuit followed a report by the U.S. Government Accountability Office with the title “Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices” which detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff.

On August 13, 2010, after the market closed, the U.S. Department of Education released the data on federal student-loan repayment rates at the nation’s colleges and universities. The data showed that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges. Specifically, the data showed that the repayment rate at DeVry was just 38%.

On this news, the price of DeVry stock dropped 8.76%, or $3.74 per share, from a closing price of $42.71 per share on August 13, 2010 to a closing price of $38.97 per share on August 16, 2010, the following trading day, on a 234% increase in trading volume.

Shares of DeVry Inc. (NYSE:DV) recently traded $47.55 per share, down from its current 52weekHigh of $74.36 per share.