SOURCE: Brower Piven, A Professional Corporation

January 20, 2012 15:57 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in Career Education Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 13, 2012 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jan 20, 2012) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of Career Education Corporation ("Career Education" or the "Company") (NASDAQ: CECO) during the period between January 1, 2009 and November 1, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in Career Education Corporation 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 60 years.

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 March 13, 2012 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 CECO was materially overstating its retention rates and employment, or "placement" rates following graduation and reported same in violation of the Company's accreditation status and Title IV funding requirements. According to the complaint, after, on May 17, 2011, CECO announced that it had received a subpoena from the Attorney General of the State of New York (the "NYAG") requesting documents pertaining to student employment outcomes and placement rates of graduates in connection with the NYAG's investigation into whether the Company and certain of its schools complied with certain New York state consumer protection, securities, finance and other laws, after, on May 24, 2011, the Company confirmed the NYAG's investigation and disclosed the existence of the Subpoena in a Form 8-K filed with the SEC, and after, on November 1, 2011, the Company released preliminary results of an investigation showing that many of CECO's schools had been artificially inflating placement rates reported to accreditation agencies, the value of CECO shares declined significantly.

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