Case Page

 

Case Status:    DISMISSED    
On or around 06/12/2013 (Other)

Filing Date: November 01, 2010

On November 1, 2010, the complaint charges DeVry and certain of its officers and executives with violations of the Exchange Act. DeVry is a global provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College and Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University. Through these institutions, DeVry offers a wide array of programs in business, healthcare and technology and serves students in middle school through postsecondary education, as well as accounting and finance professionals.

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 rate at DeVry was just 38%. On this news, the price of DeVry stock dropped 8.76%, or $3.74 per share, from a closing price of $42.71 per share on August 13, 2010 to a closing price of $38.97 per share on August 16, 2010, the following trading day, on a 234% increase in trading volume.

On January 5, 2011, the Honorable John F. Grady granted the motion to appoint the Boca Raton Firefighters' and Police Pension Fund as lead plaintiff, and approved their selection of Robbins Geller Rudman & Dowd LLP as lead counsel and Wexler Wallace LLP as liaison counsel. On March 7, 2011, the lead plaintiff filed a Consolidated Class Action Complaint. The defendants filed a motion to dismiss on May 6, 2011.

On March 27, 2012, the Court issued an order granting defendants' motion to dismiss. Plaintiff was given leave to file a second amended complaint by May 4, 2012. On May 4, 2012, the plaintiffs filed an amended consolidated class action complaint. On September 21, 2012, the plaintiffs filed an amendment to their amended complaint of May 4.

On March 27, 2013, the Court issued a Memorandum Opinion granting the defendants' motion to dismiss with prejudice. On April 26, the Plaintiffs filed a Notice of Appeal of the above Opinion.

COMPANY INFORMATION:

Sector: Services
Industry: Schools
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DV
Company Market: New York SE
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: N.D. Illinois
DOCKET #: 10-CV-07031
JUDGE: Hon. Blanche M. Manning
DATE FILED: 11/01/2010
CLASS PERIOD START: 10/25/2007
CLASS PERIOD END: 08/13/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Sugarman & Susskind
    100 Miracle Mile, Suite 300, Sugarman & Susskind, FL 33134
    305/529-2801 305/447-8115 ·
  3. Wexler Wallace LLP (Chicago)
    55 West Monroe St. Ste. 3300, Wexler Wallace LLP (Chicago), IL 60603
    312.346.2222 312.346.2222 ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 10-CV-07031
JUDGE: Hon. Blanche M. Manning
DATE FILED: 03/07/2011
CLASS PERIOD START: 10/27/2007
CLASS PERIOD END: 08/13/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  2. 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 ·
  3. Robbins Geller Rudman & Dowd LLP (San Francisco)
    100 Pine Street, Suite 2600, Robbins Geller Rudman & Dowd LLP (San Francisco), CA 94111
    415.288.4545 415.288.4534 ·
No Document Title Filing Date