Corinthian Colleges Inc Investor (NASDAQ: COCO) Investor Securities Class Action Lawsuit 08/31/2010

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Company Name(s): 
Corinthian Colleges
Case Name: 
Corinthian Colleges Shareholder Class Action Lawsuit 08/31/2010
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
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
Date Settled: 
07/07/2017
Settlement Amount: 
$2,250,000
Deadline to Participate in Settlement: 
11/02/2017
Summary: 

July 7, 2017 - The court preliminarily approved the settlement.

May 26, 2017 - Parties filed a stipulation of settlement.

August 22, 2012 - The court issued a judgment dismissing the case with prejudice.

August 20, 2012 - The court granted the defendants motions to dismiss with prejudice.

February 29, 2012 - The lead plaintiffs filed a third amended complaint.

January 30, 2012 - The court granted the defendants motions to dismiss.

June 6, 2011 - The defendants filed a motion to dismiss.

May 5, 2011 - The lead plaintiffs filed a second amended complaint.

March 30, 2011 - The lead plaintiffs and lead counsel were appointed.

November 1, 2010 - Additional lead plaintiff motions were filed.

October 29, 2010 - A lead plaintiff motion was filed.

September 1, 2010 - The plaintiffs filed an amended complaint.

August 31, 2010 - An investor in shares of Corinthian Colleges Inc (NASDAQ: COCO) filed a lawsuit in the U.S. District Court for the Central District of California against Corinthian Colleges Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 30, 2007 and August 19, 2010.

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 $907.82 million, on June 30, 2007 Total Revenue of $919.22 million, on June 30, 2008, Total Revenue of $1.068.67 billion, and on June 30, 2009, Total Revenue of $1.30783 billion. Its Net Income went during the same time frame from $42.48 million to $68.76 million.

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