American Public Education APEI Stock Purchasers File Securities Class Action Lawsuit Complaint Against American Public Education, Inc. Over Alleged Recruiting Practices.
A securities fraud class action lawsuit has been filed against American Public Education, Inc. (“American Public Education”) and certain of American Public Education’s officers (collectively “Defendants”) in the United States District Court for the Northern District of Virginia on behalf of a class consisting of all purchasers of American Public Education common stock (symbol: APEI) during the period between February 22, 2010 and August 5, 2010 (the “Class Period”), alleging that American Public Education violated federal securities fraud laws, according to class action lawsuit news reports.
The American Public Education securities class action lawsuit complaint reportedly alleges that defendants made positive statements in press releases and SEC filings regarding American Public Education’s operational performance and future growth projections, but that allegedly:
- defendants had propped up the American Public Education’s results by inducing students to enroll in American Public Education’s scholastic and educational programs and engaged in other allegedly manipulative recruiting tactics;
- defendants had overstated American Public Education’s growth prospects by failing to properly disclose that defendants had engaged in allegedly illicit and improper recruiting activities, which artificially inflated American Public Education’s reported results and future growth prospects; and
- American Public Education did not maintain adequate systems of internal operational or financial controls.
The American Public Education securities class action complaint also reportely alleges that on or about August 5, 2010, the United States General Accounting Office (“GAO”) issued a report that allegedly concluded that for-profit educational institutions like American Public Education 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.
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