| Company: | Bridgepoint Education, Inc |
| Ticker Symbol: | NYSE: BPI |
| Class Period: | Aug-7-12 to May-30-14 |
| Date Filed: | Feb-25-15 |
| Lead Plaintiff Deadline: | Apr-26-15 |
| Court: | Southern District of California |
| Allegations: | |
On May 12, 2014, BPI revealed that it was unable to timely file its Quarterly Report for the 2014 fiscal first quarter because the Securities and Exchange Commission ("SEC") had informed BPI that a reassessment of its revenue recognition policy was necessary. According to BPI, the SEC had been requiring that BPI reassess whether collectability was reasonably assured on a student-by-student basis when recognizing revenue after a student's initial enrollment upon certain changes in circumstances, such as when a student loses financial aid eligibility. Following this news, shares of BPI declined nearly 9 percent, to close on May 12, 2014, at $14.51 per share, on unusually heavy volume.
On May 30, 2014, BPI announced that its financial statements filed with the SEC for the years ended December 31, 2011 and December 31, 2012, as well as the financial statements issued for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, should no longer be relied upon. According to BPI, these financial statements contained errors related to revenue recognition that resulted in material misstatements of revenue, bad debt expense, and accounts receivable.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) BPI had applied an improper revenue recognition methodology to assess collectability of funds owed by students; (2) as a result, BPI's revenues and financial results were overstated; (3) BPI's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) BPI lacked adequate internal and financial controls; and (5), as a result of the foregoing, BPI's financial statements were materially false and misleading at all relevant times.
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.
