The firm represents investors who purchased or otherwise acquired shares in the Education Management Corporation (“EDMC” or the “Company”) (NASDAQ: EDMC). Plaintiffs and class members suffered damages when EDMC violated federal securities fraud laws by issuing a materially false and misleading registration statement and proxy-prospectus in connection with an October 2, 2009 Initial Public Offering in violation of the Securities Act of 1933. The Company’s materially false and misleading statements related to the Company’s business and operations included but are not limited to: (1) artificially inflating results by fraudulently inducing students to enroll in the Company’s scholastic and educational programs and engaged in other manipulative recruiting tactics; and (2) materially overstated the Company’s growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities.
On or about August 3, 2010 the United States General Accounting Office (“GAO”) released a report which concluded that for-profit educational institutions, like EDMC, had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of said education. Following the release of the GAO report, shares of EDMC collapsed, falling almost 18% in the days that followed.
If you purchased or otherwise acquired shares in EDMC between October 2, 2009 and August 3, 2010 (the “Class Period”), and either lost money on the transaction or still hold the shares, you may wish to join in this action as a Lead Plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 12, 2010. If you have any questions or would like additional information, please contact Gilman Law LLP at www.investment-losses.com, by email at firstname.lastname@example.org or by calling toll-free (877) 428-7374.