The Shareholders Foundation announces that an investor, who purchased shares of Education Management Corp (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 in connection with certain allegedly false and misleading statements made between August 8, 2012 and September 16, 2014.
Investors who purchased shares of Education Management Corp (NASDAQ:EDMC) have certain options and for certain investors are short and strict deadlines running. Deadline: November 18, 2014. NASDAQ:EDMC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Education Management Corp (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 Corp was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals, that Education Management Corp was overstating goodwill, that Education Management Corp 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 Corp’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 Corp’s public statements were materially false and misleading at all relevant times.
Education Management Corp 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 Corp (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 Corp 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 Corp (NASDAQ:EDMC) declined from $1.31 per share on September 11, 2014, to as low as $1.00 per share on September 23, 2014.
On September 30, 2014, NASDAQ: EDMC shares closed at $1.09 per share.
Those who purchased shares of Education Management Corp 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