A lawsuit was filed for certain investors in Corinthian Colleges Inc (NASDAQ:COCO) over alleged securities laws violations. Deadline: August 19, 2013. NASDAQ:COCO investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 06/24/2013 -- An investor, who purchased NASDAQ:COCO shares, filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Corinthian Colleges Inc in connection certain allegedly false and misleading statements that were made between August 23, 2011 and June 10, 2013.
Investors who purchased a significant amount of shares of Corinthian Colleges Inc (NASDAQ:COCO) between August 23, 2011 and June 10, 2013, and / or those who purchased NASDAQ:COCO shares prior to August 2011 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: August 19, 2013. NASDAQ:COCO investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that behalf of all persons or entities who purchased or otherwise acquired securities of Corinthian Colleges Inc (NASDAQ:COCO) between August 23, 2011 and June 10, 2013, that Corinthian Colleges Inc and certain of its officers and directors violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that the defendants made allegedly false and/or misleading statements and/or failed to disclose that defendants allegedly manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011, that defendants' predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011, and that Corinthian Colleges Inc engaged in systemic grade falsification at the Company's campuses in order to appear to be in conformance with the new regulations enacted beginning in 2011.
Corinthian Colleges Inc reported that its Total Revenue declined from over $1.78 billion for the 12 months period that ended on June 30 2011 to over $1.6 billion for the 12 months period that ended on June 30, 2012 and that its respective Net Loss declined from $111.17 million to $10.24 million.
Over the past three years, shares of Corinthian Colleges Inc (NASDAQ:COCO) declined from $18.46 per share in April 2010 to as low as $1.88 per share in April 2013.
Then on June 10, 2013, Corinthian Colleges Inc announced that on June 6, 2013, it received a subpoena from the Securities and Exchange Commission (“SEC”). Corinthian Colleges Inc said that in a letter accompanying the subpoena, the SEC stated that it is conducting an investigation of the Company. Corinthian Colleges Inc further stated that the SEC’s subpoena requests the production of documents and communications that, among other things, relate to student information in the areas of recruitment, attendance, completion, placement, defaults on federal loans and on alternative loans, as well as compliance with U.S. Department of Education financial requirements, standards and ratios (including the effect of certain borrowings under the Company’s credit facility on the Company’s composite score, and 90/10 compliance), and other corporate, operational, financial and accounting matters.
On June 21, 2013, NASDAQ:COCO shares closed at $2.16 per share.
Those who purchased shares of Corinthian Colleges Inc (NASDAQ:COCO), have certain options and should contact the Shareholders Foundation.
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