Lincoln Educational Services Corporation Former Student Investigation

If you are a former or current student of Lincoln Educational Services Corporation (NASDAQ:LINC) and its Lincoln Technical Institute, Lincoln College of Technology, Nashville Auto-Diesel College, Southwestern College, Euphoria Institute, Lincoln Culinary Institute, Lincoln College of New England, Lincoln College Online, who experienced any fraud, wrongdoing, deceptive and questionable marketing practices, or had any school loan issues,, or if you have information relating to the investigation including also former employees or whistleblowers, you have 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): 
Lincoln Educational Services
Affected Securities: 
NASDAQ: LINC

An investigation on behalf of former and current students of Lincoln Educational Services Corporation (NASDAQ:LINC) including its Lincoln Technical Institute, Lincoln College of Technology, Nashville Auto-Diesel College, Southwestern College, Euphoria Institute, Lincoln Culinary Institute, Lincoln College of New England, Lincoln College Online, was announced in connection with the report by the Government Accountability Office with the title "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices."

Lincoln Educational Services Corporation is a provider of career-oriented post-secondary education. It operates through its Lincoln Technical Institute, Lincoln College of Technology, Nashville Auto-Diesel College, Southwestern College, Euphoria Institute, Lincoln Culinary Institute, Lincoln College of New England, Lincoln College Online. Lincoln Educational Services faces an investor lawsuit on behalf of those who purchased LINC stock between March 3, 2010 and August 5, 2010 against Lincoln Educational Services Corp. over alleged violations of Federal Securities Laws. According to the complaint filed in the United States District Court for the District of New Jersey 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 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.The lawsuit followed a report by the U.S. Government Accountability Office with the title “Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices” which detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff.

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.

According to the investigation by a law firm former and current students of Lincoln Educational Services Corporation (NASDAQ:LINC) and its Lincoln Technical Institute, Lincoln College of Technology, Nashville Auto-Diesel College, Southwestern College, Euphoria Institute, Lincoln Culinary Institute, Lincoln College of New England, Lincoln College Online, may have material information concerning those allegations and may be eligible to file a complaint for allegedly misleading students.

Also whistleblowers may according to the law firm be able to assist or file their own complaint. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide “original information” leading to a successful SEC enforcement, so the law firm. Whistleblowers may remain completely anonymous and work with the SEC through an attorney. Under the new law, so the investigation, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC.

Recently the Attorney General of Florida Bill McCollum launched an investigation into some for-profit education companies. On October 19, 2010, the Wall Street Journal reported that Florida Attorney General's office has launched an investigation into five for-profit colleges, including four publicly traded schools, seeking information on potential misrepresentations in financial aid, recruitment and other areas. The state is reportedly looking into allegations at Washington Post Co.'s (WPO) Kaplan Inc.--including its Kaplan University, Kaplan Educational Centers and Kaplan College units--and at Education Management Corp.'s (EDMC) Argosy University, Apollo Group Inc.'s (APOL) University of Phoenix; Corinthian Colleges Inc.'s (COCO) Everest College and privately held MedVance Institute.