According to the complaint filed August 31, 2010, throughout the class period the defendants made false and/or misleading statements, as well as failed to disclose adverse information about the Company. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) the Company overstated its growth prospects by engaging in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company’s reported results and future growth prospects; (2) the Company’s financial results were overstated in that the Company’s colleges inflated tuition costs and its loan repayment rates were well below levels required for participation in federal loan programs; (3) the Company failed to maintain adequate systems of internal operational or financial controls; and (4) based on the foregoing, defendants lacked a basis for their positive statements about the Company, its prospects and growth.
According to the Minute Order filed on March 30, 2011, the Wyoming/PMT has the larger financial stake in this litigation, and is the presumed lead plaintiff absent defects in the Rule 23 requirements. Since we have already concluded that Wyoming/PMT satisfies the Rule 23 requirements for present purposes, we now appoint Wyoming/PMT as the lead plaintiffs in this action, and appoint Robbins Geller Rudman & Dowd LLP as counsel for lead plaintiffs.
On May 05, 2011, a Second Amended Complaint for Violation of the Federal Securities Laws was filed in the Central District of California.
On January 30, 2012, the Court issued an Order granting Defendants' motion to dismiss, with leave to amend. On February 29, 2012, a Third Amended Complaint was filed. On March 30, 2012, the Defendants filed a motion to dismiss the TAC. On August 20, 2012, the Court issued an Order granting the Defendants' motion to dismiss with prejudice.