K12, Inc LRN Securities Stock Fraud

Company:	K12, Inc
Ticker Symbol:	LRN
Class Period:	Sep-9-09 to Dec-16-11
Date Filed:	Jan-30-12
Lead Plaintiff Deadline:	Mar-30-12
Court:	Eastern District of Virginia
Allegations:

New York, NY: A securities class action lawsuit has been filed against K12 Inc ("K12" or the "Company") and certain of its senior executives. The action filed in the United States District Court for the Eastern District of Virginia, asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in K12 common stock during the period between September 9, 2009 and December 16, 2011, inclusive (the "Class Period").

K12 and certain of its senior executives are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Specifically, on December 12, 2011, The New York Times released an article titled "Profits and Questions at Online Charter Schools" chronicling a myriad of improper practices at K12's main virtual charter schools, including (i) high-pressure sales strategies aimed strictly at enrolling students, irrespective of the students' suitability for online education; (ii) administrative pressure to pass enrolled students, regardless of academic performance; and (iii) overall failure of K12 students to maintain grade-level performance in math and reading. On this news, the price of K12 stock dropped 34.4%, or $9.89 per share, from a closing price of $28.79 on December 12, 2011, to a closing price of $18.90 per share on December 16, 2011, on unusually heavy trading volume.

The true facts known by the defendants but concealed from the investing public during the Class Period, were that (i) the Company misstated and failed to disclose that it had engaged in improper and deceptive recruiting and sales strategies, aimed strictly at enrolling students regardless of the students' ability to successfully complete the curriculum; (ii) the Company misstated and failed to disclose the administrative pressure from upper management levels to pass students despite poor (or nonexistent) academic performance, so as to maintain high enrollment levels and in turn continued government payments; and (iii) the Company's failure to maintain overall math and reading performance levels of its students equal to statewide grade-level performance. As a result, the Complaint alleges that K12 violated provisions of the Exchange Act during the Class Period by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission and statements during investor conference calls.

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.

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Published on Jan-31-12