DeVry Inc. Long Term Investor Investigation

If you are a current long term investor in common stock of DeVry Inc. (NYSE:DV), including those who purchased (also) prior to October 2007 and presently continue to hold those DV shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
DeVry
Affected Securities: 
NYSE: DV

An investor in DeVry Inc. shares filed a lawsuit on behalf of purchasers of the common stock of DeVry Inc. (NYSE:DV) between October 25, 2007 and August 13, 2010 against DeVry Inc. for allegedly violating Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in DeVry Inc. (NYSE:DV) shares over possible breaches of fiduciary duty by certain directors and officers of DeVry Inc was announced.

The investigation by a law firm on behalf of current long term investors in stock of DeVry Inc. (NYSE:DV) concerns whether certain current and/or former members of DeVRy, Inc’s board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased DV stock between between October 25, 2007 and August 13, 2010. According to this complaint filed in the United States District Court for the Northern District of Illinois the plaintiff alleges that DeVry Inc. violated the Securities Exchange Act of 1934 by issuing between October 25, 2007 and August 13, 2010 materially false and misleading statements regarding DeVry’s business and financial results. DeVrys’ revenue more than doubled within the past four years. DeVry Inc. reported on June 30, 2007 for the past 12 months Total Revenue of $933.47million, on June 30, 2008 $1.09183billion, on June 30, 2009, $1.46145billion, and on June 30, 2010, $1.91518billion. Its Net Income more than tripled over the same time frame. DeVry Inc. reported on June 30, 2007 $76.19million and on June 30, 2010 $279.91million.

The lawsuit follows a report of the U.S. Government Accountability Office (“GAO”) titled “Undercover Testing Finds Colleges Encouraged Fraud and Engaged 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. The undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and that all 15 made deceptive or otherwise questionable statements to GAO’s undercover applicants. In particular, so the report, admissions or financial aid representatives at all 15 for-profit colleges provided our undercover applicants with deceptive or otherwise questionable statements, which included information about the college’s accreditation, graduation rates and its student’s prospective employment and salary qualifications, duration and cost of the program, or financial aid. Representatives at schools also employed hard-sell sales and marketing techniques to encourage students to enroll, so the report.
On August 13, 2010, after the market closed, the U.S. Department of Education released the data on federal student-loan repayment rates at the nation’s colleges and universities. The data showed that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges. Specifically, the data showed that the repayment rate at DeVry was just 38%. On this news, the price of DeVry stock dropped 8.76%, or $3.74 per share, from a closing price of $42.71 per share on August 13, 2010 to a closing price of $38.97 per share on August 16, 2010, the following trading day, on a 234% increase in trading volume.

Recently the Attorney General of Florida Bill McCollum launched an investigation into some for-profit education companies in that regard.

Shares of DeVry Inc. (NYSE:DV) lost within the past month roughly 35% of its value and traded recently at $48.18 per share, down from its current 52weekHigh of $74.36 per share.