SOURCE: Brower Piven, A Professional Corporation

August 19, 2010 12:49 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in Apollo Group, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 15, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - August 19, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Arizona on behalf of purchasers of the common stock of Apollo Group, Inc. ("Apollo" or the "Company") (NASDAQ: APOL) during the period between December 7, 2009 and August 3, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 15, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard. 

The Complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings during the Class Period regarding Apollo'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.

If you have suffered a net loss for all transactions in Apollo Group, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 50 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact