NEW YORK, Dec. 23, 2003 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of Career Education Corporation ("Career Education" or the "Company") (Nasdaq:CECO) common stock during the period between January 28, 2003 and December 2, 2003, inclusive (the "Class Period").
If you purchased Career Education securities during the Class Period, you may, no later than February 9, 2004, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html.
The complaint charges Career Education, John M. Larson, Patrick K. Pesch with violations Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the defendants' statements made during the Class Period were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company's "record" financial growth was a product of inflated student enrollment, retention, and graduation rates procured through the falsification of such records; (2) that student records were falsified in order to show a higher rate of enrollment, student retention, and graduation so that the Company would qualify for state and federal funding; (3) that Company, in order to procure its "record" financial results, forced its employees to falsify student records; and (4) that the Company's earning and net income were materially inflated and in violation of Generally Accepted Accounting Principles ("GAAP") because the Company's financial results were derived from the defendants' illegal practices.
Similarly on December 3, 2003, The Santa Barbara News-Press reported that another former employee at a school owned by the defendants had filed another lawsuit wherein she claimed that "officials at the school acted illegally and improperly to inflate enrollment and boost the bottom line." The former employee also alleged that "(m)any staff members have been asked by management to commit forgery, fraud, perjury or whatever else is necessary to pass audit inspections." On news of this, shares of Career Education fell nearly 28% or $15.28 per share to close at $39.48 per share on December 3, 2003.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers ofCarrer Education securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at www.nyclasslaw.com.
For an information package (www.nyclasslaw.com/infopackage.html) or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com