Bridgepoint Education Inc (NYSE:BPI) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations In Connection with Ashford University’s Accreditation
July 13, 2012 (Shareholders Foundation) -- An investor in Bridgepoint Education Inc (NYSE:BPI) shares filed a lawsuit in the U.S. District Court for the Southern District of California against Bridgepoint Education Inc over alleged Violations of Federal Securities Laws in connection with certain financial statements regarding Ashford University’s accreditation.
According to the complaint the plaintiff alleges on behalf of purchasers of Bridgepoint Education Inc (NYSE:BPI) common stock during the period between May 3, 2011 and July 6, 2012, that Bridgepoint Education Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding Bridgepoint Education’s business and prospects. Specifically, so the plaintiff, defendants concealed accreditation problems with the Company's Ashford campus.
On July 9, 2012, Bridgepoint Education Inc (NYSE:BPI) disclosed in a filing with the U.S. Securities and Exchange Commision (“SEC”) that its Ashford University received official notice from the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges ("WASC") that WASC has acted to deny initial accreditation to the institution and to permit the institution to reapply for accreditation with a single special visit to occur as early as spring 2013. Bridgepoint Education Inc said that WASC found that Ashford University had not yet demonstrated substantial compliance with certain of the WASC Standards for Accreditation, as would be required for initial accreditation.
The plaintiff claims that as a result of defendants' allegeldy false statements, Bridgepoint Education Inc (NYSE:BPI) stock traded at artificially inflated prices between May 3, 2011 and July 6, 2012, reaching a high of $30.50 per share on July 22, 2011.
Shares of Bridgepoint Education Inc (NYSE:BPI) fell from $21.50 per share on July 6, 202 to $14.25 per share on July 9, 2012 and dropped on July 13, 2012 to $9.45 per share.


