| Company: | Education Management Corporation |
| Ticker Symbol: | EDMC |
| Class Period: | Oct-2-09 to Aug-3-10 |
| Date Filed: | Aug-12-10 |
| Lead Plaintiff Deadline: | Oct-11-10 |
| Court: | Western District of Pennsylvania |
| Allegations: | |
EMC and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934, and are charged with issuing a materially false and misleading registration statement and proxy-prospectus in connection with the October 2, 2009 Initial Public Offering, in violation of the Securities Act of 1933.
In particular, the Complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings during the Class Period regarding the Company's operational performance and future growth projections, these statements were false because: (1) defendants had propped up the Company's results by fraudulently inducing students to enroll in EMC's scholastic and educational programs and engaged in other manipulative recruiting tactics; (2) defendants had materially overstated the Company's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; and (3) EMC did not maintain adequate systems of internal operational or financial controls, which would have permitted EMC's reported operational statements and foreseeable growth prospects to be true, accurate or reliable.
It was only on August 3, 2010 that investors finally began to learn the truth about EMC after the United States General Accounting Office ("GAO") issued a report that concluded that for-profit educational institutions like EMC had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of such education. Following these disclosures, shares of the Company collapsed -- falling almost 18% in several trading days as this news reached the market.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
