The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of ITT Educational Services, Inc. (NYSE:ESI) was launched concerning potential breaches of fiduciary duties by certain directors and officers of ITT Educational Services, Inc.
Investors who are current long term investors in ITT Educational Services, Inc. (NYSE:ESI) shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NYSE:ESI stocks follows a lawsuit filed recently against ITT Educational Services, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:ESI stocks, concerns whether certain ITT Educational Services officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of Indiana the plaintiff alleges that Defendants made certain allegedly false and misleading statements and failed to disclose that ITT Educational Services, Inc’s financial statements contained errors related to the accounting of the PEAKS Trust and PEAKS Program, and that ITT Educational Services, Inc lacked adequate internal controls over financial reporting.
On May 22, 2014, ITT Educational Services, Inc announced that it was withdrawing its 2014 financial forecast and investors should no longer rely upon it due to uncertainties surrounding the accounting of its PEAKS private student loan program.
On June 24, 2014, ITT Educational Services announced in a Securities and Exchange Commission, (SEC) Form 8-K filing, “that the Company should have consolidated the financial results of the PEAKS Trust in the Company’s consolidated financial statements beginning on February 28, 2013, the Company’s Audit Committee concluded that the Company will need to restate the unaudited financial statements in its Quarterly Reports on Form 10-Q for each of the fiscal quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, and that those previously-issued financial statements should no longer be relied upon. Further, the preliminary financial information included in the Company’s press releases issued on January 30, 2014 and May 22, 2014, and provided during the conference calls on those same days, should no longer be relied upon.”
On August 1, 2014, ITT Educational Services, Inc disclosed that on July 29, 2014, it received a notice of termination of the Agreement for Purchase and Sale of Real Estate from College Portfolio Buyer LLC. ITT Educational Services, Inc said the potential buyer, College Portfolio Buyer LLC, dropped out of the deal to sell some of the properties after ITT Educational Services, Inc refused to extend a due diligence period. On August 4, 2014, ITT Educational Services, Inc announced that Kevin M. Modany notified the Board of Directors of the Company that he intended to resign as Chief Executive Officer of the Company, effective February 4, 2015.
Then on September 19, 2014, ITT Educational Services, Inc. (NYSE:ESI) disclosed that on August 7, 2014, it received a notice from the staff of the Division of Enforcement (the “Staff”) of the SEC, notifying the Company that the Staff had made a preliminary determination to recommend that the SEC file an enforcement action against the Company. Shares of ITT Educational Services, Inc. (NYSE:ESI) declined from over $45 per share in January 2014 to as low as $4.07 per share on September 25, 2014.
On October 24, 2014, NYSE:ESI shares closed at $8.81 per share.
Those who purchased shares of ITT Educational Services, Inc. have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com