Corinthian Colleges, Inc. Investor Files Lawsuit Alleging Securities Laws Violations

If you purchased or acquired Corinthian Colleges, Inc. (NASDAQ:COCO) securities during the period from October 30, 2007 through including August 19, 2010, you have certain options and there are strict and short deadlines running. Deadline: October 29, 2010. Those COCO stockholders and current long term COCO investors, including those who purchased COCO shares prior to October 2007 and continue to hold those shares, 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): 
Corinthian Colleges
Case Name: 
Corinthian Colleges Shareholder Class Action 08/31/2010
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: COCO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/31/2010
Class Period Begin: 
10/30/2007
Class Period End: 
08/19/2010
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
10/29/2010
Summary: 

An investor in Corinthian Colleges, Inc. (NASDAQ:COCO) filed a lawsuit in the United States District Court for the Central District of California on behalf of all persons who purchased or acquired Corinthian Colleges, Inc. (NASDAQ:COCO) securities during the period from October 30, 2007 through including August 19, 2010, over alleged violations of Federal Securities Laws by Corinthian Colleges.

According to the complaint the plaintiff alleges that Santa Ana, California based Corinthian Colleges, Inc and certain of its officers violated the Securities Exchange Act of 1934 by issuing between October 30, 2007 through including August 19, 2010, false and/or misleading statements, as well as by failing to disclose material adverse facts about its business, operations, and prospects.

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.

Corinthian Colleges, Inc. reported on June 30, 2006 for the past 12 months Total Revenue of $907.82million, on June 30, 2007 Total Revenue of $919.22million, on June 30, 2008, Total Revenue of $1.068.67billion, and on June 30, 2009, Total Revenue of $1.30783billion. Its Net Income went during the same time frame from $42.48million to $68.76million.

As a result of the revelations in connection to the investigation by the Congressional Committee, the Company’s stock (COCO) fell from $9.25 on August 02, 2010 to $4.49 on August 20, 2010, when it declined nearly 17%, so the lawsuit.