NEW YORK, NY / ACCESSWIRE / April 15, 2016 / Pomerantz LLP announces that a class action lawsuit has been filed against Apollo Education Group, Inc. ("Apollo" or the "Company") (NASDAQ: APOL) and certain of its officers. The class action, filed in United States District Court, District of Arizona, is on behalf of a class consisting of all persons or entities who purchased Apollo securities between June 26, 2013 and October 21, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Apollo securities during the Class Period, you have until May 13, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Apollo owns and operates several for-profit educational institutions throughout the United States. Its largest is the University of Phoenix, which the Company characterizes as "the nation's largest regionally accredited private university."
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (i) Apollo reported generating billions of dollars in revenues while concealing that a substantial portion of those revenues were being derived through improperly aggressive recruiting tactics being undertaken at U.S. military bases across the country that contradicted an Executive Order signed into law by President Barrack Obama on April 27, 2012; (ii) Apollo's improperly aggressive recruiting tactics also allegedly violated the express terms of the contractual agreements the Company had entered into with the U.S. Department of Defense ("DoD") in February 2012 and July 2014 to permit the University of Phoenix to continue to participate in the DoD's tuition assistance programs; (iii) the Defendants concealed that efforts to transition Apollo's online classroom platform to a new "industry-leading private cloud infrastructure, offering enhanced scalability, reliability and performance," were failing because, unbeknownst to investors, from its inception the new platform was not functioning as designed due to software compatibility problems that prevented students from signing onto their online courses, which had dramatically increased student drop-out rates; and (iv) Defendants hid from the investment community the deleterious impact the software compatibility problems were having not only on retention rates but on new student enrollment.
As a result of Defendants' false statements, which emphasized Apollo's financial successes and strong financial prospects, the price of the Company's Class A common stock traded at artificially inflated levels, reaching a Class Period high of $35.92 per share in intraday trading on January 22, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP