Lincoln Educational Services Corporation Investor Files Lawsuit Over Alleged Securities Laws Violations

If you purchased common stock of Educational Services Corporation (NASDAQ:LINC) between March 3, 2010 and August 5, 2010, you have certain options and there are short and strict deadlines running. Deadline: October 15, 2010. Those LINC stockholders and current long term LINC investors, including those who purchased their LINC stock prior to March 03, 2010, 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): 
Lincoln Educational Services
Case Name: 
Lincoln Educational Services Class Action 08/13/2010
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: LINC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/13/2010
Class Period Begin: 
03/03/2010
Class Period End: 
08/05/2010
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
10/15/2010
Summary: 

An investor in Lincoln Educational Services Corporation (NASDAQ:LINC) filed a lawsuit in the United States District Court for the District of New Jersey against Lincoln Educational Services Corp. over alleged violations of Federal Securities Laws.

Lincoln Educational Services Corporation, located in West Orange, NJ, is a provider of career-oriented post-secondary education. Lincoln Educational Services Corporation reported increasing total revenue with the past four years. Lincoln Educational Services Corp reported total revenue in 2006 of $310.63million, in 2007 $327.77milloin, in 2008 $376.91million, and in 2009 $552.54million. Its net income increased over the same period from $15.55million in 2006 to $49.24million in 2009. According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Lincoln Educational Services Corporation between March 3, 2010 and August 5, 2010, that Lincoln Educational Services and certain of its Officers issued between March 3, 2010 and August 5, 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 owned by Education Management Corp. 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. Following these disclosures, so the lawsuit, shares of Lincoln Educational Services collapsed -- falling over $4.30, or 20% in a single trading day, on unusually high trading volume. Shares of Lincoln Educational Services Corporation (Public, NASDAQ:LINC) traded recently at $11.16 per share, down from its 52weekHigh of $28.21 per share.