Key Developments: Career Education Corp (CECO.O)
2.94USD
22 May 2013
$-0.11 (-3.61%)
$3.05
$3.05
$3.06
$2.90
1,257,335
883,914
$7.39
$2.03
Latest Key Developments (Source: Significant Developments)
Career Education Corp Names Scott Steffey As President And Chief Executive Officer
Career Education Corp announced Scott Steffey - former Chief Operating Officer of Strayer Education, Inc., and Vice Chancellor of the State University of New York (SUNY) - as President and Chief Executive Officer (CEO). Steffey, whose appointment is effective immediately, will also be nominated to stand for election to the Career Education Board of Directors at the upcoming Annual Meeting of Stockholders. Steve Lesnik, who has served as interim CEO, remains as Chairman of the Board of Directors through the Annual Meeting. Full Article
Career Education Corp To Cut Jobs, Shut Campuses-Reuters
Reuters reported that Career Education Corp will close 23 campuses and cut 900 jobs amid losses and falling student enrollments that also threaten to affect its financial position. The Company on November 08, 2012 said the job cuts, which will be completed by January 2013, are expected to save about $45 million to $55 million. The campuses that are to be shut are expected to contribute about $124.3 million of revenue for the year ending December 3, 2012. The campuses will remain open to offer current students the ability to complete their course. Full Article
Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuit Against Career Education Corp.
Lieff Cabraser Heimann & Bernstein, LLP announced that a class action lawsuit has been brought on behalf of purchasers of the common stock of Career Education Corporation (Career Education or the Company) between January 1, 2009 and November 1, 2011, inclusive (the Class Period). If you purchased Career Education common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 13, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Full Article
The Briscoe Law Firm and Powers Taylor, LLP Announces Investigation Of Career Education Corp.
The Briscoe Law Firm and Powers Taylor, LLP announced that the firms are investigating legal claims against the officers and Board of Directors of Career Education Corporation (Career Education or CECO) related to potential securities violations between January 1, 2009 and November 1, 2011 (the Class Period). In a recently filed federal class action complaint, Career Education and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that various public statements by the defendants during the Class Period were each materially false and misleading in that defendants knew or recklessly disregarded that: defendants represented that CECO's retention rates and employment, or "placement" rates, following graduation were higher than they actually were; Career Education's purported placement rates were achieved through an improper course of conduct and a manipulative use of the term employment; and Career Education reported inflated placement rates to the Accrediting Counsel for Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and its other accrediting agencies. Full Article
Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Career Education Corp.
Glancy Binkow & Goldberg LLP announced that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of Career Education Corp. common stock between January 1, 2009 and November 1, 2011, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. CECO operates colleges, schools and universities primarily in the United States that provide educational services in career-oriented disciplines. The Complaint alleges that defendants misrepresented or failed to disclose material adverse facts about the Company's business and financial condition, including that: (i) CECO’s retention rates and employment or “placement” rates following graduation were higher than they actually were; (ii) the Company’s purported placement rates were achieved through an improper course of conduct and a manipulative use of the term “employment”; (iii) the Company reported inflated placement rates to the Accrediting Counsel for Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and its other accrediting agencies; and (iv), as a result of the foregoing, defendants misrepresented the health and condition of the Company, in particular its ability to continue to receive Title IV Funding. Full Article
Gilman Law LLP, A National Law Firm Representing Victims Of Securities Fraud, Announces Shareholders' Securities Fraud Against Career Education Corp.
The national law firm of Gilman Law LLP announces a securities law violations lawsuit against Career Education Corporation (Career Education, CEC or the Company) and certain of its officers and directors. The suit alleges that materially false and misleading statements or failed to disclose material information related to the Company's business and operations were made in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-5 promulgated there under. The shareholder class action lawsuit was filed in the US District Court for the Northern District of Illinois after certain key Company senior executives resigned and the Company's stock plummeted almost 50%. Shareholders allege that throughout the Class Period, Career Education represented that its retention rates and employment or placement rates following graduation were higher than they actually were. The Complaint alleges that positive statements made by the Company were materially false and misleading when made, and were known to be false and misleading because the Company failed to disclose that the Company's purported Placement rates were achieved through an improper course of conduct and a manipulative use of the term employment. Full Article
The Law Firm of Levi & Korsinsky Announces Class Action Lawsuit Against Career Education Corp.
The Law Firm of Levi & Korsinsky announced that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of investors who purchased Career Education Corporation (Career Education or the Company) stock between January 1, 2009 and November 1, 2011. The Complaint alleges that defendants misrepresented or failed to disclose materially adverse facts about the Company’s business and financial condition, including that: defendants represented that CECO’s retention rates and employment, or placement rates following graduation were higher than they actually were; the Company’s purported Placement rates were achieved through an improper course of conduct and a manipulative use of the term employment; the Company reported inflated placement rates to the Accrediting Counsel for Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and its other accrediting agencies; and as a result of the foregoing, defendants misrepresented the health and condition of the Company, particularly in regard to its ability to continue receiving Title IV Funding. Full Article
Law Offices of Howard G. Smith Announces Class Action Lawsuit Against Career Education Corp.
Law Offices of Howard G. Smith announced that a class action lawsuit has been filed on behalf of purchasers of the common stock of Career Education Corporation between January 1, 2009 and November 1, 2011, inclusive (Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934. The class action lawsuit was filed in the United States District Court for the Northern District of Illinois. Full Article
Holzer Holzer & Fistel, LLC Announces Investigation Of Career Education Corp.
Holzer Holzer & Fistel, LLC announced that it is investigating potential breaches of fiduciary duty by certain officers and directors of Career Education Corporation (Career Education or the Company). On January 13, 2011, an investor filed a class action lawsuit in the Northern District of Illinois alleging that Career Education violated the federal securities laws between January 1, 2009 and November 1, 2011 (the Class Period). The lawsuit alleges, among other things, that during the Class Period the Company misrepresented certain information regarding retention and employment rates of students following graduation from CECO programs. According to the lawsuit, Career Education lacked adequate internal controls needed to accurately determine its true placement rates. Holzer Holzer & Fistel, LLC’s investigation seeks to determine if the allegations contained in the class action complaint also give rise to separate claims for breaches of fiduciary duty. Full Article
Rigrodsky & Long, P.A. Announces Securities Fraud Class Action Lawsuit Against Career Education Corp.
Rigrodsky & Long, P.A. announced that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased or otherwise acquired the common stock of Career Education Corporation between January 1, 2009 and November 1, 2011, inclusive alleging violations of the Securities Exchange Act of 1934 Complaint). The Complaint names Career Education and certain of the Company’s directors and officers as defendants. It is alleged, that during the Class Period, Career Education reported inflated and false Placement Rates to the Accrediting Counsel for Independent Colleges and Schools (“ACICS”), the Accrediting Commission of Career Schools and Colleges (ACCSC) and the Company’s other accrediting agencies, and, as a result, misled its investors as to the health and condition of the Company, in particular its ability to continue to receive Title IV Funding. Full Article
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