Case Page

 

Case Status:    SETTLED
On or around 03/29/2016 (Other)

Filing Date: March 11, 2013

According to the law firm press release, the complaint charges ITT and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ITT is a provider of post-secondary degree programs in the United States.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results in press releases, analyst conference calls and filings with the SEC, specifically with respect to the Company’s compliance with relevant accounting standards when reporting its risk-sharing activities in loan programs. As a result of defendants’ false statements, ITT stock traded at artificially inflated prices during the Class Period, reaching a high of $112.69 per share on April 22, 2010.

On February 22 , 2013, after the market closed, ITT filed its Form 10-K with the SEC for its fiscal year ended December 31, 2012. The Form 10-K disclosed that the SEC was investigating ITT’s involvement in some private student-loan agreements. ITT revealed that it had received a subpoena from the SEC on February 8, 2013, along with a letter informing the Company of the investigation. The subpoena issued by the SEC requested documents related to a 2009 loan risk-sharing agreement and ITT’s PEAKS Private Student Loan Program (“PEAKS Program”). As a result of this news, ITT’s stock plunged $3.10 per share to close at $15.53 per share on February 25, 2013, a one-day decline of nearly 17% on volume of over 1.7 million shares.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company failed to properly account for the 2009 loan risk-sharing agreement and its PEAKS Program; and (b) the Company failed to maintain proper internal controls to ensure that risk-sharing agreements were properly recorded.

Plaintiffs filed a consolidated complaint on October 7, 2013. This was followed by a corrected version of that Complaint on October 11.

On November 2, 2015, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on November 23. On March 8, 2016, the Court granted final approval of the Settlement and dismissed this case.

COMPANY INFORMATION:

Sector: Services
Industry: Schools
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ESI
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: S.D. New York
DOCKET #: 13-CV-01620
JUDGE: Hon. Oetken
DATE FILED: 03/11/2013
CLASS PERIOD START: 04/22/2010
CLASS PERIOD END: 02/25/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ademi & O'Reilly, LLP
    3620 East Layton Ave., Ademi & O'Reilly, LLP, WI 53110
    866-264-3995 414-482-8001 · inquiry@ademilaw.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 13-CV-01620
JUDGE: Hon. Oetken
DATE FILED: 01/15/2014
CLASS PERIOD START: 04/24/2008
CLASS PERIOD END: 02/25/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Sellers & Toll PLLC (Chicago)
    190 South LaSalle Street, Suite 1705, Cohen Milstein Sellers & Toll PLLC (Chicago), IL 60603
    312.357.0370 312.357.0369 ·
  2. O'Donoghue & O'Donoghue LLP
    4748 Wisconsin Avenue, N.W., O'Donoghue & O'Donoghue LLP, DC 20016
    (202) 362-0041 (202) 362-2640 ·
No Document Title Filing Date