According to the law firm press release, Bridgepoint is a regionally accredited provider of postsecondary education services. The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (i) the Company failed to implement adequate plans, procedures and practices to assist students in completing the academic programs in which they had enrolled; (ii) the Company failed to align resources with educational requirements, hampering its students' ability to progress to acceptable levels; (iii) the Company's Ashford University failed to maintain an adequate number of faculty and programs, resulting in poor instruction and low completion rates by students; (iv) the Company had inadequate review procedures such that shortfalls in completion rates were not timely identified and remedied; (v) the Company's Ashford University failed to maintain an empowered and independent governing board; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 9, 2012, the Company disclosed that one of its schools, Ashford University was denied initial accreditation by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges, as it failed to demonstrate "substantial compliance with certain of the WASC Standards for Accreditation."
On this news, Bridgepoint securities fell $7.25 per share or more than 33%, to close at $14.25 per share on July 9, 2012.
On July 13, 2012, the Company disclosed that Ashford received a letter from the Higher Learning Commission of the North Central Association of Schools and Colleges requiring Ashford "to provide certain information and evidence of compliance with HLC accreditation standards."
On this news, Bridgepoint stock declined an additional $3.20 per share or nearly 25%, to close at $9.77 per share on July 13, 2012.
On October 22, 2012, the Court issued an order granting consolidation of cases and appointed Robbins Geller Rudman & Dowd LLP as lead counsel.
The parties entered into a Stipulation of Settlement on October 30, 2015. This Settlement was preliminarily approved by the Court on December 14. On April 27, 2016, the Court granted final approval of the Settlement and dismissed this case with prejudice.