The Shareholders Foundation announces that an investor, who purchased shares of Bridgepoint Education Inc (NYSE:BPI), filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Bridgepoint Education Inc in connection with certain allegedly false and misleading statements made between August 7, 2012 and May 30, 2014.
Investors who purchased shares of Bridgepoint Education Inc (NYSE:BPI) have certain options and for certain investors are short and strict deadlines running. Deadline: April 27, 2015. NYSE:BPI investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Bridgepoint Education Inc (NYSE:BPI) common shares between August 7, 2012 and May 30, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 7, 2012 and May 30, 2014 defendants made allegedly false and/or misleading statements and/or failed to disclose to investors that Bridgepoint Education Inc had applied an improper revenue recognition methodology to assess collectability of funds owed by students, that as a result, Bridgepoint Education’s revenues and financial results were overstated, that Bridgepoint Education’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP), that Bridgepoint Education Inc lacked adequate internal and financial controls, and that as a result of the foregoing, Bridgepoint Education”s financial statements were materially false and misleading at all relevant times.
On May 7, 2014, Bridgepoint Education Inc announced that it has re-scheduled the release of its first quarter 2014 financial results to before market open on Monday, May 12, 2014, to coincide with the planned filing date of its Quarterly Report on Form 10-Q.
On May 12 2014 Bridgepoint Education Inc reported its preliminary first quarter 2014 results. Bridgepoint Education said that it has determined it will be unable to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 by the filing deadline of May 12, 2014. Among other things, Bridgepoint Education Inc also said that its first quarter revenue in 2014 was $160.5 million, compared to $221.98 million in the first quarter in 2013 and that in 2014 it had a first quarter Net Loss of $4.4 million, compared to a first quarter Net Income of $26.97 million in 2013.
On May 30, 2014, Bridgepoint Education Inc disclosed in a filing with the SEC that on May 23, 2014, the management of Bridgepoint Education, Inc. concluded that Bridgepoint Education Inc’s previously issued financial statements for the year ended December 31, 2013, as well as for the interim periods included in that fiscal year, should no longer be relied upon because of errors related to revenue recognition that resulted in material misstatements of revenue, bad debt expense and accounts receivable.
Shares of Bridgepoint Education Inc (NYSE:BPI) declined from almost $20 per share in late February 2014 to as low as $12.67 per share on June 2, 2014. NYSE:BPI shares continued to decline to as low as $9.23 per share in late January 2015.
On March 6, 2015, NYSE:BPI shares closed at $9.58 per share.
Those who purchased shares of Bridgepoint Education Inc (NYSE:BPI) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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