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Case Status:    SETTLED
On or around 11/21/2017 (Date of order of distribution of settlement)

Filing Date: September 30, 2014

According to the law firm press release, ITT provides postsecondary degree programs in the United States in various fields, including business, criminal justice, information technology, electronics technology, drafting and design, and nursing and health sciences.

The Complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects, including material information concerning two private education loan programs for its students.

Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company had failed to consolidate the financial results of the PEAKS Trust into ITT’s financial results; (2) the Company’s financial statements contained errors related to the accounting of the PEAKS Trust and PEAKS Program; (3) the Company had improperly accounted for is guarantee obligations under the PEAKS program; (4) as a result, the Company’s financial results were overstated; (5) the Company lacked adequate internal and financial controls; and (6), as a result of the foregoing, ITT’s financial statements were materially false and misleading at all relevant times.

On September 19, 2014, the Company filed a Form 8-K with the Securities and Exchange Commission and disclosed that on August 7, 2014, the Company received a “Wells Notice” from the Securities and Exchange Commission, Division of Enforcement, notifying the Company that the division Staff had made a preliminary determination to recommend that the SEC file an enforcement action against the Company.

According to the Company, the Staff informed ITT that “the enforcement action would allege violations of Sections 10(b), 13(a) and 13(b)(2) of the Securities Exchange Act of 1934,” and various Rules promulgated under the Exchange Act, and “the Staff’s recommendation may: involve a civil injunctive action, public administrative proceeding and/or cease-and-desist proceeding against us; and seek remedies that include an injunction, a cease-and-desist order and monetary relief, including civil monetary penalties.”

Following this news, the price of ITT shares fell 35 percent, or $2.70 per share, to close at $4.95 per share on September 19, 2014.

On November 2, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on November 4. On March 24, 2016, the Court granted final approval of the Settlement and dismissed this case.


Sector: Services
Industry: Schools
Headquarters: United States


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. Indiana
DOCKET #: 14-CV-01599
JUDGE: Hon. Tanya Walton Pratt
DATE FILED: 09/30/2014
CLASS PERIOD END: 09/19/2014
  1. Price Waicukauski & Riley, LLC
  2. The Rosen Law Firm P.A. (New York)
No Document Title Filing Date
COURT: S.D. Indiana
DOCKET #: 14-CV-01599
JUDGE: Hon. Tanya Walton Pratt
DATE FILED: 05/26/2015
CLASS PERIOD END: 05/12/2015
  1. Glancy Prongay & Murray LLP
  2. Katz & Korin, PC
No Document Title Filing Date
No Document Title Filing Date