The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Education Management Corp (NASDAQ:EDMC) was initiated concerning potential breaches of fiduciary duties by certain directors and officers of Education Management Corp.
Investors who are current long term stockholders in Education Management Corp (NASDAQ:EDMC) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NASDAQ:EDMC stocks follows a lawsuit filed recently against Education Management Corp over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:EDMC stocks, concerns whether certain Education Management officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Western District of Pennsylvania the plaintiff alleges that between August 8, 2012 and September 16, 2014 defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Education Management Corp was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals, that Education Management Corp was overstating goodwill, that Education Management Corp manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011, that Education Management Corp’s predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011, and that as a result of the foregoing, Education Management Corp’s public statements were materially false and misleading at all relevant times.
On September 16, 2014, Education Management Corp announced that it would be unable to timely file its annual report for the fiscal year ended June 30, 2014 without unreasonable effort or expense due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to revenue recognition and related bad debt reserves recorded upon student withdrawals from school.
Shares of Education Management Corp (NASDAQ:EDMC) declined from $1.31 per share on September 11, 2014, to as low as $0.77 per share on October 10, 2014.
On October 20, 2014, NASDAQ:EDMC shares closed at $1.31 per share.
Those who purchased shares of Education Management Corp (NASDAQ:EDMC) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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