Pomerantz Law Firm Has Filed a Class Action Against Bridgepoint Education, Inc. -- BPI
Published on Tuesday, 17 July 2012 21:49 Written by TradersHuddle Staff
NEW YORK, July 17, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a securities class action against Bridgepoint Education, Inc. ("Bridgepoint" or the "Company") (NYSE:BPI) and certain of its officers. The class action (3:12–cv-01759), filed in the United States District Court, Southern District of California, is on behalf of all persons or entities who purchased Bridgepoint securities between May 3, 2011 and July 12, 2012, inclusive (the "Class Period"). This class action seeks to recover damages caused by defendants' violations of the federal securities laws and to pursue remedies under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its top officials.
Bridgepoint is a regionally accredited provider of postsecondary education services. The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (i) the Company failed to implement adequate plans, procedures and practices to assist students in completing the academic programs in which they had enrolled; (ii) the Company failed to align resources with educational requirements, hampering its students' ability to progress to acceptable levels; (iii) the Company's Ashford University failed to maintain an adequate number of faculty and programs, resulting in poor instruction and low completion rates by students; (iv) the Company had inadequate review procedures such that shortfalls in completion rates were not timely identified and remedied; (v) the Company's Ashford University failed to maintain an empowered and independent governing board; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 9, 2012, the Company disclosed that one of its schools, Ashford University was denied initial accreditation by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges, as it failed to demonstrate "substantial compliance with certain of the WASC Standards for Accreditation."
On this news, Bridgepoint securities fell $7.25 per share or more than 33%, to close at $14.25 per share on July 9, 2012.
On July 13, 2012, the Company disclosed that Ashford received a letter from the Higher Learning Commission of the North Central Association of Schools and Colleges requiring Ashford "to provide certain information and evidence of compliance with HLC accreditation standards."
On this news, Bridgepoint stock declined an additional $3.20 per share or nearly 25%, to close at $9.77 per share on July 13, 2012.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
- Heilbron Award Presented to Bridgepoint Education for Good Works in 2012
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- Bridgepoint Education Schedules First Quarter 2013 Earnings Conference Call for May 06, 2013
- Bridgepoint Education's Academic Institutions Roll Strikes in Denver to Support Junior Achievement
- Online Education Model Shapes Tomorrow's Leaders
- Bridgepoint Education Reports Full Year 2012 Results
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