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If you purchased shares of Education Management Corporation (NASDAQ: EDMC), you might have certain options and should contact the Shareholders Foundation, Inc.
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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
Settlement Overview
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February 19, 2016 - The court approved the settlement, the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
February 17, 2016 - The court held a final settlement hearing.
October 1, 2015 - The court preliminarily approved the settlement.
September 17, 2015 - Parties filed a stipulation of settlement.
May 18, 2015 - Defendants filed a motion to dismiss.
March 3, 2015 - The lead plaintiff filed an amended complaint.
December 19, 2014 - Lead plaintiff and lead counsel were appointed.
September 19, 2014 - An investor in shares of Education Management Corporation (NASDAQ: EDMC) filed a lawsuit in the U.S. District Court for the Western District of Pennsylvania over alleged violations of Federal Securities Laws by Education Management Corporation in connection with certain allegedly false and misleading statements made between August 8, 2012 and September 16, 2014.
According to the complaint the plaintiff alleges on behalf of purchasers of Education Management Corporation (NASDAQ: EDMC) common shares between August 8, 2012 and September 16, 2014, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Education Management Corporation was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals, that Education Management Corporation was overstating goodwill, that Education Management Corporation manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011, that Education Management Corporation’s predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011, and that as a result of the foregoing, Education Management Corporation's public statements were materially false and misleading at all relevant times.
Education Management Corporation 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 Corporation (NASDAQ: EDMC) grew from under $3 in August 2012 to as high as $14.86 per share on Oct. 25, 2013.
Since then NASDAQ: EDMC shares declined significantly.
On September 16, 2014, Education Management Corporation announced that it would be unable to timely file its annual report for the fiscal year ended June 30, 2014 without unreasonable effort or expense due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to revenue recognition and related bad debt reserves recorded upon student withdrawals from school.
Shares of Education Management Corporation (NASDAQ: EDMC) declined from $1.31 per share on September 11, 2014, to as low as $1.01 per share on September 19, 2014.