Apollo Group, Inc. Investor File Lawsuit
An Investor of Apollo Group, Inc. (NASDAQ:APOL) filed a lawsuit in the United States District Court for the District of Arizona, against Apollo Group, Inc and certain of its Officers over alleged violations of Federal Securities Laws.
Apollo Group, Inc., located in Phoenix, Arizona, is a private education provider. Apollo Group offers educational programs and services both online and on-campus at the undergraduate, graduate and doctoral levels through its wholly-owned subsidiaries, The University of Phoenix, Inc. , Western International University, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation, and Meritus University, Inc. According to the complaint the plaintiff alleges that Apollo Group, Inc., and certain of its Officers issued between December 7, 2009 and August 3, 2010, a series of materially false and misleading statements related to its business and operations in violation of the Securities Exchange Act of 1934.
On August 4, 2010, the Senate Health, Education, Labor, and Pensions Committee conducted a hearing on for-profit education firms, where Government Accountability Office representative, George Kutz, presented the findings of report GAO-10-948T, "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices." The report detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff. According to this GAO study, the college personnel at schools may have encouraged applicants to falsify their financial aid forms to qualify for federal aid and pressured applicants to sign a contract for enrollment prior to allowing them to speak to a financial advisor.
Apollo Groups’ Total Revenue went from $2.47753billion in 2006, to $2.72379billion in 2007, to $3.14093billion in 2008, and to $3.9742billion in 2009. Its Net Income rose from $414.83million in 2006 to $598.32million in 2009.
Shares of Apollo Group, Inc. (Public, NASDAQ:APOL) traded recently at $40.36 per share, nearly half of its current 52weekHigh of $76.86 per share. During 2009 APOL share reached almost $90 per share.


