Career Education Corp. Hit By Investor Class Action Lawsuit Over Alleged Securities Laws Violations

If you purchased shares of Career Education Corp. (NASDAQ: CECO) during the period between January 1, 2009 and November 1, 2011, you have certain options and there are strict and short deadlines running. Deadline: March 13, 2012. Those CECO stockholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Career Education Corp
Case Name: 
Career Education Corp Shareholder Class Action 01/13/2012
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: CECO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/13/2012
Class Period Begin: 
01/01/2009
Class Period End: 
11/01/2011
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
03/13/2012
Summary: 

San Diego, Jan. 13, 2012 (Shareholders Foundation) -- An investor in NASDAQ:CECO shares filed a lawsuit in United States District Court for the Northern District of Illinois against Career Education Corp. over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of purchasers of Career Education Corporation (NYSE: CECO) shares during the period between January 1, 2009 and November 1, 2011, that Career Education and certain of its officers and directors violated Securities Exchange Act of 1934 by allegedly issued materially false and misleading statements regarding its business and prospects.

On May 17, 2011, Career Education Corporation announced that it had received a subpoena from the Attorney General of the State of New York . The subpoena requested documents pertaining to student employment outcomes and Placement Rates of graduates among other items in connection with the Attorney General of the State of New York's investigation into whether Career Education Corp. and certain of its schools complied with certain New York state consumer protection, securities, finance and other laws.

Then on November 1, 2011 Career Education announced that its Board of Directors has accepted the resignation of Gary E. McCullough as President, Chief Executive Officer and Board member.

Shares of Career Education fell from as high as $17.76 on October 24, 2011 to $7.37 on November 3, 2011 and closed as low as $6.32 per share On December 20, 2011.