October 20, 2020 - A consolidated complaint was filed.

May 12, 2020 - An investor in shares of Grand Canyon Education, Inc. (NASDAQ: LOPE) filed a lawsuit in the U.S. District Court for the District of Delaware over alleged violations of Federal Securities Laws by Grand Canyon Education, Inc. in connection with certain allegedly false and misleading statements made between January 5, 2018, and January 27, 2020.

Phoenix, AZ based Grand Canyon Education, Inc. provides education services in the United States. Grand Canyon Education, Inc. reported that its annual Total Revenue declined from $974.13 million in 2017 to $845.5 million in 2018 and that its Net Income increased from $203.31 million in 2017 to $229.01 million in 2018.

On September 9, 2019, a known short seller published a report examining Grand Canyon's financials and concluding that the Company is stuffing GCU with expenses to inflate its own profitability and as a result bankrupting GCU. On November 6, 2019, Grand Canyon Education, Inc announced that it had received a letter from the U.S. Department of Education ( DOE ) denying its application for designation of GCU as a non-profit. That denial was based on the DOE's finding that GCU was Grand Canyon's captive client and GCU is not the entity actually operating [GCU] (emphasis in the original). On January 28, 2020, a report was published entitled The Educational Enron wherein a series of alarming red flags about Grand Canyon Education, Inc (“GCU”) were detailed. Specifically, the report stated that GCU has become a vehicle for the LOPE executives to commit securities fraud and obfuscate the true financials of Grand Canyon Education. The report further stated, LOPE is in clear violation of SEC rule 10b-5 as they use the private university to dump expenses and liabilities, while receiving a disproportionate amount of revenue at inflated margins in order to artificially inflate the stock price. Shares of Grand Canyon Education, Inc. (NASDAQ: LOPE) declined from $132.12 per share in August 2019 to as low as $77.81 per share on January 31, 2020. On February 4, 2020, NASDAQ: LOPE shares closed at $76.97 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Grand Canyon Education, Inc. (NASDAQ: LOPE) common shares between January 5, 2018, and January 27, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between January 5, 2018, and January 27, 2020, the Defendants inflated Grand Canyon's financial results by using GCU as an off-balance-sheet entity to which Grand Canyon was able to funnel expenses and costs in exchange for a disproportionate amount of revenue, that the Defendants repeatedly made false and misleading statements to investors describing GCU as a non-profit and independent institution and misstating Grand Canyon's role as a third-party provider of education services, and that as a result of Defendants' misrepresentations, shares of Grand Canyon's common stock traded at artificially inflated prices between January 5, 2018, and January 27, 2020.