The attorney general of California filed a lawsuit against Corinthian Colleges Inc and current long-term NASDAQ:COCO stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 10/21/2013 -- The California Attorney General has filed a lawsuit against Corinthian Colleges Inc for allegedly misleading students and investors about the value of its degrees and targeting isolated and disadvantaged students in an “aggressive” recruitment strategy.
Investors who are current long term investors in Corinthian Colleges Inc (NASDAQ:COCO) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The lawsuit filed by the Attorney General of California alleges that Corinthian Colleges Inc is engaging in unlawful, unfair, and fraudulent practices in connection with the sale of very expensive programs to students throughout California, many of whom head single parent families and have annual incomes that are new the federal poverty line.
According to the complaint Corinthian Colleges Inc targets this demographic, which it alleges describes in internal company documents as composed of “isolated”, “impatient” individuals with “low self-esteem,” who have “few people in their lives who care about them” and who are “stuck” and “unable to see and plan well for future” through aggressive and persistent internet and telemarketing campaigns and through television ads on popular daytime shows.
Furthermore the the Attorney General alleges in the complaint that Corinthian Colleges Inc runs millions of online and mobile ads on programs its does not offer and disciplines its call center agents if they tell callers that Corinthian Colleges Inc does not offer these programs. In addition, the complaint alleges that Corinthian Colleges Inc certain official military seals in mailings and on web sites without authorization and in violation of California law.
The Attorney General said in a press statement that “Corinthian College was serving not as an educator but as a predator“ and that the “predatory scheme devised by executives at Corinthian Colleges Inc. is unconscionable”. The Attorney General said that the scheme was designed to rake in profits and mislead investors while targeting some of the state’s most particularly vulnerable people, including low income, single mothers and veterans returning from combat.
The complaint alleges that Corinthian Colleges Inc committed securities fraud by reporting a nationwide job placement rate of 68.1% in presentations to investors, when senior executives knew this percentage was false.
Meanwhile an investigation by a law firm is ongoing concerning whether certain Corinthian Colleges officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Shares of Corinthian Colleges Inc traded in 2010 as high as $18.58 per share and have lost significant value. On Oct. 18, 2013, NASDAQ:COCO shares closed at $2.05 per share.
Those who purchased shares of Corinthian Colleges Inc have certain options and should contact the Shareholders Foundation.
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