SOURCE: Bernstein Liebhard LLP

August 23, 2010 15:35 ET

Bernstein Liebhard LLP Announces Filing of Action on Behalf of Investors in Apollo Group, Inc.

NEW YORK, NY--(Marketwire - August 23, 2010) -  Bernstein Liebhard LLP today announced that a class action has been filed in the United States District Court for the District of Arizona on behalf of purchasers (the "Class") of Apollo Group, Inc. ("Apollo" or the "Company") (NASDAQ: APOL) common stock during the period December 7, 2009 and August 3, 2010 (the "Class Period"). 

Apollo and certain of its officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.

In particular, the complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings during the Class Period regarding the Company's operational performance and future growth projections, these statements were false because: (1) defendants had propped up the Company's results by fraudulently inducing students to enroll in Apollo's scholastic and educational programs and engaged in other manipulative recruiting tactics; (2) defendants had materially overstated the Company's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; and (3) Apollo did not maintain adequate systems of internal operational or financial controls, which would have permitted Apollo's reported operational statements and foreseeable growth prospects to be true, accurate or reliable.

It was only on August 3, 2010 that investors finally began to learn the truth about Apollo after the United States General Accounting Office ("GAO") issued a report that 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 such education. Following these disclosures, shares of the Company declined precipitously over just a few trading days -- falling almost 10% between August 3 and August 5, 2010, on unusually high trading volume, thereby eradicating over $684.53 million of the Company's market capitalization in only four trading days.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Apollo during the Class Period. If you purchased or otherwise acquired Apollo shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as 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 15, 2010.

A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you are interested in discussing your rights as an Apollo shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.

Bernstein Liebhard has pursued hundreds of securities, consumer and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last seven years.

You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of Arizona.

ATTORNEY ADVERTISING. © 2010 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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