OKLAHOMA CITY, OK / ACCESSWIRE / May 13, 2020 / Murphy Law Firm announces that a class action lawsuit has been filed on behalf of investors who purchased Grand Canyon Education, Inc. (NASDAQ:LOPE) securities. The lawsuit alleges that certain Grand Canyon executive officers fraudulently inflated the company's financial results by using Grand Canyon University ("GCU") as an off-balance-sheet entity through which Grand Canyon was able to funnel expenses and costs while reporting a disproportionate amount of revenue. When the truth emerged, it caused the company's stock price to fall significantly. The lawsuit seeks to recover monetary damages for Grand Canyon investors.
To join the lawsuit, go to http://www.murphylegalfirm.com/cases/grandcanyon-landing/ or email [email protected] for more information about your legal rights.
The lawsuit alleges that defendants made materially false and misleading statements to investors, including falsely describing GCU as a "non-profit" and "independent" institution and misrepresenting Grand Canyon's role as nothing more than a third-party provider of education services. In truth, according to the lawsuit, Grand Canyon covertly controls and operates GCU. Specifically, the lawsuit alleges that defendants materially failed to disclose to investors that: (1) GCU would not be and is not a proper non-profit organization as it remains under the control of Grand Canyon; (2) Grand Canyon would not be a third-party service provider to GCU but rather would and does continue to effectively operate the entity; (3) Grand Canyon employees served as executives of GCU; and (4) GCU functions as an off-balance-sheet entity to which Grand Canyon is able to funnel expenses and costs in exchange for a disproportionate amount of revenue, thereby inflating Grand Canyon's financial results. When the true details were revealed to the market, the price of Grand Canyon stock fell, causing substantial losses for investors.
Join the Class Action: http://www.murphylegalfirm.com/cases/grandcanyon-landing/
SOURCE: Murphy Law Firm