SOURCE: Brower Piven, A Professional Corporation

November 19, 2010 17:09 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in Capella Education Company to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the January 4, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - November 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 Minnesota on behalf of purchasers of the common stock of Capella Education Company ("Capella" or the "Company") (NASDAQ: CPLA) during the period between February 16, 2010 and August 13, 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 January 4, 2011 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.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company had engaged in improper and deceptive recruiting and financial aid lending practices and, due to the government's scrutiny into the for-profit education sector, the Company would be unable to continue these practices in the future; the Company failed to maintain proper internal controls; and many of the Company's programs were in jeopardy of losing their eligibility for federal financial aid. According to the complaint, after the U.S. Department of Education released data on August 13, 2010 on federal student-loan repayment rates at the nation's colleges and universities showing that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges and that, specifically, the data showed that the repayment rate at Capella was just 40%, the value of Capella stock declined significantly.

If you have suffered a net loss for all transactions in Capella Education Company 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