Case Page

 

Case Status:    DISMISSED    
On or around 03/20/2012 (Court's order of dismissal)

Filing Date: October 15, 2010

According to a press release dated October 15, 2010, the complaint charges Strayer and certain of its officers and executives with violations of the Exchange Act. Strayer is a for-profit post-secondary education services corporation that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, healthcare, public administration and criminal justice at 78 physical campuses in Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Washington, D.C.

The complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose that: (i) the Company had engaged in improper and deceptive recruiting and financial aid lending practices and, due to the government’s scrutiny into the for-profit education sector, the Company would be unable to continue these practices in the future; (ii) the Company failed to maintain proper internal controls; (iii) many of the Company’s programs were in jeopardy of losing their eligibility for federal financial aid; and (iv) as a result of the foregoing, defendants’ statements regarding the Company’s financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.

On August 13, 2010, after the market closed, the U.S. Department of Education released data on federal student-loan repayment rates at the nation’s colleges and universities. The data showed that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges. Specifically, the data showed that the repayment rates at Strayer were just 25%. On this news, the price of Strayer stock dropped 18.37%, or $36.75 per share, from a closing price of $200.01 per share on August 13, 2010 to a closing price of $163.26 per share on August 16, 2010, the following trading day, on a 482% increase in trading volume.

On January 31, 2011, the Court issued an Order consolidating the related cases and appointed lead plaintiff and lead counsel in this matter.

On March 17, 2011, a Consolidated Amended Complaint was filed by the lead plaintiffs against the defendants.

On April 19, 2011, the Defendants’ counsels filed a Motion to Dismiss the Consolidated Amended Complaint.

On March 20, 2012, the Court issued an Order dismissing the amended complaint and dismissing this action with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Schools
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: STRA
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Florida
DOCKET #: 10-CV-02317
JUDGE: Hon. Steven D. Merryday
DATE FILED: 10/15/2010
CLASS PERIOD START: 11/01/2007
CLASS PERIOD END: 08/13/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP
    303 East 17th Avenue, Suite 300, Dyer & Berens LLP, CO 80203
    303.861.1764 303.861.1764 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Holzer Holzer & Fistel, LLC (former Atlanta)
    1117 Perimeter Center West, Suite E-107, Holzer Holzer & Fistel, LLC (former Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  4. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
No Document Title Filing Date
COURT: M.D. Florida
DOCKET #: 10-CV-02317
JUDGE: Hon. Steven D. Merryday
DATE FILED: 03/17/2011
CLASS PERIOD START: 11/01/2007
CLASS PERIOD END: 01/07/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barker, Rodems & Cook, PA
    400 N. Ashley Drive, Suite 2100, Barker, Rodems & Cook, PA, FL 33602
    813.489.1001 813.489-1008 ·
  2. Bernstein Liebhard LLP (New York)
    10 East 40th Street, 22nd Floor, Bernstein Liebhard LLP (New York), NY 10016
    212.779.1414 212.779.1414 ·
No Document Title Filing Date