A lawsuit was filed by an investor in NASDAQ:CECO shares against directors of Career Education Corp. over alleged breaches of fiduciary duties and current long-term NASDAQ:CECO investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 11/12/2012 -- An investor in shares of Career Education Corp. (NASDAQ:CECO) filed a lawsuit against directors of Career Education Corp. over alleged violations that have cost the Company millions of dollars.
Investors who are current long term stockholders of shares of Career Education Corp. (NASDAQ:CECO) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff seeks to remedy harm to Career Education allegedly committed by certain of its directors and officers. The plaintiff says that certain defendants harmed Career Education Corp. by causing violations of the Securtities Exchange Act of 1934 and applicable state law concerning the recruitment of students, including, but not limited to, allegedly disseminating inflated job placement rates.
Furthermore, so the plaintiff, the practices implemented by certain defendants have caused Career Education Corp to come dangerously close, if not violate, regulations under Title IV of the Higher Education Act, which is the source of over 80% of the Company's tuition revenue.
The plaintiff says that in order to receive funding under Title IV of the Higher Education Act, educational institutions must be accredited and to maintain accreditation, schools must place at least 65% of their graduating students in jobs for which their studies prepared them.
However, so the plaintiff, defendants allegedly consistently misled the public with improper statements about Career Education's job placement rates and other "gainful employment" data.
The plaintiff says he repeatedly sent letters to the board of directors of Career Education demanding that it investigate and take action against those that harmed Career Education. However, the board refused to investigate the matters raised in plaintiff's demand, so the lawsuit.
Career Education Corp. reported that its annual Revenue fell from over $2 billion in 2010 to over $1.82 billion in 2011 and that its Net Income declined from $157.77 million in 2010 to $18.57 million in 2011.
Shares of Career Education Corp. (NASDAQ:CECO) declined from over $34 in April 2010 to as low as $2.93 on November 9, 2012.
Those who are long term stockholders in shares of Career Education Corp. (NASDAQ:CECO) and currently hold those Career Education Corp. shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego