Apollo Group, Inc. Long Term Shareholder Investigation

Apollo Group Inc. still faces a pending lawsuit on behalf of investors who purchased common shares of Apollo Group, Inc. (NASDAQ:APOL) between November 28, 2001 and October 18, 2006. Recently an investigation on behalf of current long term investors of Apollo Group, Inc. (NASDAQ:APOL), including those who purchased after October 18, 2006 and continue to hold their APOL shares, over possible securities laws violations by Apollo Group, Inc. and others was announced.

Apollo Group, Inc., located in Phoenix, Arizona, is a private education provider, which offers educational programs and services both online and on-campus at the undergraduate, graduate and doctoral levels through its wholly-owned subsidiaries. In the lawsuit filed in 2006 the plaintiff alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements to artificially inflate the value of Apollo stock.

The recent investigation by a law firm focuses on the following events. On October 27, 2009, after the market closed, Apollo Group, Inc reported its financial results for the fourth quarter and year ended August 31, 2009, including earnings per share of $1.06 for the three months ended August 31, 2009 excluding certain special items. In addition to stating “[w]e are pleased to report another quarter of excellent financial and operating performance”, Apollo Group, Inc also reported that the U.S. Securities and Exchange Commission had begun an informal probe into Apollo Group’s revenue recognition practices and stated as follows: “The Company announced that the Enforcement Division of the Securities and Exchange Commission (“SEC”) has commenced an informal inquiry into the Company’s revenue recognition practices. Based on the information that has been disclosed to Apollo Group, the scope, duration and outcome of the inquiry cannot be determined at this time. The Company intends to cooperate fully with the SEC in connection with the inquiry.” On October 28, 2009, during morning trading, Apollo Group’s common stock APOL declined by $12.06 per share, approximately 16.5%, from $72.97 per share to $60.91 per share on substantially greater than average volume. Apollo Group, Inc shares APOL traded recently at $64.16 per share, down from its 52weekHigh of $76.86 per share, and over $89.22 per share in 2009.