MINNEAPOLIS, Aug. 23, 2011 (GLOBE NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of The Princeton Review, Inc. ("Princeton Review" or the "Company") (Nasdaq:REVU) publicly traded securities during the period March 12, 2009 through March 11, 2011 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before September 27, 2011. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Defendants issued materially false and misleading statements regarding the Company's business and prospects. Defendants misrepresented and/or failed to disclose the following adverse facts: 1) that the Company's revenues and earnings were negatively impacted by increased competition in its marketplace, including from companies with lower cost offerings; 2) that a number of significant operational problems existed at the Company that negatively impacted its business; 3) that the Company had shifted its focus, and a significant amount of resources, away from its core higher education readiness and Penn Foster core businesses in pursuit of unproven projects to the detriment of its business, financial performance and prospects; 4) that contrary to the Company's public statements, the Company was not executing well on its turn-around plan; 5) that the Company had encountered significant problems in the higher education readiness business due to a product mix shift and increased competition; and 6) that, as a result of the foregoing, Defendants' positive statements about the Company were lacking in a reasonable basis of fact and were materially false and misleading when made.
On March 9, 2011, the Company announced that its President and Chief Executive Officer resigned. That same day, the Company issued a press release announcing its financial results for the fourth quarter and full year 2010. For the full year 2010, losses from continuing operations were $50.4 million, compared to $13.9 million in 2009.
Following these announcements, the price of shares declined 37.80% to $0.51 per share on March 10, 2011, and then declined another 23.53% on March 11, 2011, to close at $0.39 per share.
If you purchased The Princeton Review, Inc. stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685