The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares ITT Educational Services, Inc. (NYSE:ESI) shares was launched over potential breaches of fiduciary duties by certain officers and directors at ITT Educational Services.
Investors who purchased shares of ITT Educational Services, Inc. (NYSE:ESI) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain ITT Educational Services officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
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.
Shares of ITT Educational Services, Inc. (NYSE:ESI) declined from $14.38 per share on August 1, 2014, to $7.55 per share on August 4, 2014. In fact, since January this year, NYSE ESI shares declined from over $45.00 per share to under 8 per share in August, a decline of over 80%.
On August 26, 2014, NYSE:ESI shares closed at $8.35 per share.
Those who purchased shares of ITT Educational Services, Inc. (NYSE:ESI) 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