BOSTON, Oct. 14, 2010 (GLOBE NEWSWIRE) -- Gilman and Pastor, LLP announces Notice of Deadline in the securities fraud class action lawsuit which was commenced in the United States District Court for the District of Arizona against Apollo Group, Inc. ("Apollo") and certain of Apollo's officers (collectively "Defendants") on behalf of a class consisting of all purchasers of Apollo common stock (Nasdaq:APOL) during the period between February 12, 2007 through August 3, 2010, inclusive (the "Class Period").
The Complaint alleges that Apollo violated federal securities fraud laws by issuing a series of materially false and misleading statements. These statements were false because:
(1) Defendants inflated Apollo's results by inducing students to enroll in Apollo's scholastic and educational programs and engaged in other manipulative recruiting tactics;
(2) Defendants had materially overstated Apollo's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, thereby artificially inflating Apollo's reported results and future growth prospects; and
(3) Apollo did not maintain adequate systems of internal operation or financial controls which would have permitted Apollo's reported operational statements and foreseeable growth prospects to be true and accurate or reliable.
On or about August 3, 2010, the United States General Accounting Office ("GAO") released a report which concluded that for-profit educational institutions like Apollo 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 Apollo collapsed, falling almost 10% in the following trading days.
If you purchased or otherwise acquired Apollo shares during the Class Period, between February 12, 2007 and August 3, 2010, and either lost money on the transaction or still hold the shares, you may wish to join in this action. If you wish to serve as a lead plaintiff, a party representative that acts on behalf of other class members, you may do so if the Court determines that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff.
To discuss your rights as an Apollo shareholder, including as to the recovery of your losses, or to obtain additional information, please contact Gilman and Pastor, LLP at www.investment-losses.com, by email at rpotkay@gilmanpastor.com or by calling toll-free (877) 428-7374.