| Company: | Corinthian Colleges, Inc. |
| Ticker Symbol: | COCO |
| Class Period: | Oct-30-07 to Aug-19-10 |
| Date Filed: | Sep-1-10 |
| Lead Plaintiff Deadline: | Oct-31-10 |
| Court: | Central District of California |
| Allegations: | |
Corinthian Colleges, Inc. is a post-secondary education company in the United States and Canada. On August 3, 2010, the U.S. General Accounting Office issued a report that concluded that for-profit educational institutions such as Corinthian had engaged in an illegal and fraudulent course of action designed to recruit students and overcharge the federal government for the cost of such education. Thereafter, a Congressional Committee launched an investigation of such practices; the U.S. Department of Education released data showing that the loan repayment rates for Corinthian enrollees were well below the level required for federal loan program eligibility; and the Company disclosed that its enrollee default rates had significantly increased, and were continuing to do so.
As a result of these revelations, the Company's stock fell from $9.25 on August 3, 2010 to $4.49 on August 20, 2010.
The complaint alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) the Company overstated its growth prospects by engaging in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; (2) the Company's financial results were overstated in that the Company's colleges inflated tuition costs and its student loan repayment rates were well below levels required for participation in federal loan programs; (3) the Company failed to maintain adequate systems of internal operational or financial controls; and (4) based on the foregoing, defendants lacked a basis for their positive statements about the Company, its prospects and growth.
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.
