| Company: | Lincoln Educational Services Corporation |
| Ticker Symbol: | LINC |
| Class Period: | Mar-13-09 to Aug-5-10 |
| Date Filed: | Sep-20-10 |
| Lead Plaintiff Deadline: | Nov-19-10 |
| Court: | District of New Jersey |
| Allegations: | |
Lincoln 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.
Throughout the Class Period, defendants issued a series of materially false and misleading statements regarding Lincoln's compliance with governmental regulations, and the growth and foreseeable profitability of Lincoln.
Defendants' Class Period statements were materially false and misleading when made, and were known by defendants to be false or were recklessly disregarded as such thereby, for the following reasons, among others: Lincoln was not compliant with government regulations under Title IV; Defendants had propped up the Company's results by fraudulently inducing students to enroll in Lincoln's scholastic and educational programs and engaged in other manipulative recruiting tactics which defendants knew, or recklessly disregarded, could not be maintained; Defendants 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 Lincoln did not have adequate systems of internal operational or financial controls, such that Lincoln's reported operational statements and foreseeable growth prospects were true, accurate, or reliable.
During the Class Period, Defendant and Lincoln Executive Chairman James Carney sold almost $6 million in Lincoln stock while in possession of material inside information about the Company.
It was only on August 5, 2010, however, that investors learned the truth about Lincoln after the Company announced that it was changing its recruitment standards and could no longer maintain its growth expectations. This came right on the heels of the United States General Accounting Office's ("GAO") report concluding that for-profit educational institutions like Lincoln 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. The August 5th release implicated Lincoln's compliance with government (Title IV) regulations because Lincoln reported a sudden change in "student starts" for the upcoming quarter right after the government findings of wrongdoing concerning recruitment. Following these disclosures, shares of the Company fell over $4.30, or almost 20% in a single trading day, on unusually high trading volume.
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.
