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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of July 13, 2019 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO 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 13, 2019 - The court preliminarily approved the settlement.
November 26, 2018 - A stipulation of settlement was filed by the parties.
October 2, 2017 - A second amended consolidated complaint was filed.
August 30, 2017 - The court granted in part and denied in part defendants' motion to dismiss.
January 31, 2017 - A motion to dismiss the amended consolidated complaint was filed.
December 2, 2016 - An amended consolidated complaint was filed.
July 20, 2016 - An investor in shares of K12 Inc (NYSE: LRN) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by K12 Inc in connection with certain allegedly false and misleading statements made between November 7, 2013 through October 27, 2015.
According to the complaint the plaintiff alleges on behalf of purchasers of K12 Inc (NYSE: LRN) common shares between November 7, 2013 through October 27, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between November 7, 2013 through October 27, 2015 defendants issued false and misleading statements to investors and/or failed to disclose that K12 Inc was publishing misleading advertisements about students’ academic progress, parent satisfaction, their graduates’ eligibility for University of California and California State University admission, class sizes, the individualized and flexible nature of K12 Inc’s instruction, hidden costs, and the quality of the materials provided to students, that K12 Inc submitted inflated student attendance numbers to the California Department of Education in order to collect additional funding, that K12 Inc was open to potential civil and criminal liability due to these practices, that K12 Inc would likely be forced to end these practices, which would have a negative impact on K12 Inc’s operations and prospects, and/or that K12 Inc was, in fact, ending the practices, and that as a result, K12 Inc’s public statements were materially false and misleading at all relevant times. K12 Inc reported that its Total Revenue increased from $848.22 million for the 12 months period that ended on June 30, 2013 to $948.29 million for the 12 months period that ended on June 30, 2015 while its Net Income for those respective time periods declined from $28.11 million to $10.99 million. Shares of K12 Inc (NYSE: LRN) reached as high as $36.78 per share in September 2013.
On October 27, 2015, post-market, K12 Inc disclosed receipt on September 24, 2015 of a civil investigative subpoena from the Attorney General of California in connection with an industry-wide investigation into for-profit virtual schools. Shares of K12 Inc (NYSE: LRN) declined to as low as $9.50 per share on October 30, 2015.