Shuman Law Firm Investigates Education Management Corp.

The Shuman Law Firm announced that it is investigating potential claims against certain officers and directors of Education Management Corp. (Education Management or the Company). On August 3, 2010 the U.S. General Accounting Office (GAO) issued a report which concluded that several for-profit educational institutions had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of such education. The GAO report also cited possible violations of state and federal laws relating to program accreditation and student employment statistics. While Education Management was not specifically named in the GAO report, following these disclosures, shares of the Company fell approximately 18% as this news reached the market. A recently unsealed qui tam action filed by two former employees, and in which the Department of Justice and twelve states have intervened, makes similar claims including that the Company illegally paid recruiters billions of dollars in incentives to sign students up. If they prove their case, Education Management could be forced to repay three times the damages, plus penalties.