San Diego, CA -- (SBWIRE) -- 04/22/2014 -- An investigation on behalf of investors who purchased shares of K12 Inc. (NYSE:LRN) was launched concerning whether certain K12 directors and officers breached their fiduciary duties and caused damages to the company and its stockholders.
Investors who are current long term investors in K12 Inc. (NYSE:LRN) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE:LRN stocks follows a lawsuit filed recently against K12 Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in K12 Inc. (NYSE:LRN) stocks, concerns whether certain K12 officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the District of Eastern District of Virginia the plaintiff alleges that K12 Inc. violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.More specifically, the plaintiff claims that defendants issued between March 11, 2013 through October 9, 2013 allegedly materially misleading statements and omissions about K12 regarding its student enrollment and revenue growth prospects for fiscal 2014, including compliance with state regulations governing enrollment.
In December 2012 a media report entitled “Profits and Questions at Online Charter Schools” raised serious concerns about K12’s business practices, alleging that its schools inflate their student rosters, are underperforming academically, have detrimental student-to-teacher ratios and gain wrongful access to public funds. Shortly after that a lawsuit was filed against K12 Inc. over alleged securities laws violations. The lawsuit was filed on behalf of investors who purchased K12, Inc. common stock during the period between September 9, 2009 and December 16, 2011. In 2013 the lawsuit settled for $6.75 million.
On October 8, 2013, K12 Inc. announced it plans to host a conference call to discuss full fiscal year 2014 guidance on Thursday, October 10, 2013. K12 Inc. said that it is reporting Q1 FY 2014 average student enrollments1Q1 average student enrollments are equal to the official count date number, which is the first Wednesday of October in a year. in managed public schools of 128,550, an increase of 5.7% over Q1 FY 2013, which is below management’s expectations. K12 Inc. also said that it expects full fiscal year revenues in the range of $905 million to $925 million and full year operating income in the range of $53 million to $57 million. Shares of K12 Inc. (NYSE:LRN) declined to $17.60 per share on October 9, 2013.
Those who purchased shares of K12 Inc. have certain options and should contact the Shareholders Foundation.
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