October 15, 2013 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Education Management Corp (NASDAQ:EDMC) was announced concerning whether certain Education Management officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Education Management officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for amendments to the 2012 Omnibus Long-Term Incentive Plan.

In the Proxy Statement filed by Education Management Corp with the Securities and Exchange Commission the Board of Directors recommends that Education Managements shareholders vote to approve amendments to the 2012 Omnibus Long-Term Incentive Plan which would increase the number of shares of common stock authorized for issuance thereunder by 4 million.


According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Education Management Corp

Shares of Education Management Corp (NASDAQ:EDMC) declined from almost $28 per share in late December 2011 to as low as $2.99 per share in late August 2012.

Education Management Corp reported that its Total Revenue declined from over $2.76 billion for the 12 months that ended on June 30, 2012 to over $2.49 billion that ended on June 30, 2013, while its respective Net Loss declined from over $1.51 billion to $267.98 million.

Shares of Education Management Corp (NASDAQ:EDMC) grew from under $3 in august 2012 to as high as $9.76 per share on Oct. 9, 2013,