SOURCE: Shareholders Foundation, Inc.

Shareholders Foundation, Inc.

December 12, 2011 09:35 ET

Career Education Investor Lawsuit Against Directors Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - Dec 12, 2011) - The Shareholders Foundation, Inc. announces that a current investor in shares of Career Education Corp. (CECO) filed a lawsuit in State Court against directors of Career Education over alleged breaches of fiduciary duties in connection with student placement reports.

If you are a current long term investor in shares of Career Education Corp. (CECO), you should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

According to the complaint the plaintiff alleges that directors at Career Education Corp. failed to ensure the accuracy of reported job-placement rates used to determine the eligibility for federal tuition funding and failed to exercise reasonably appropriate oversight over the internal controls involving accreditation.

The plaintiff says that "the professional schools operated by Career Education Corp. derive greater than 80 percent of their tuition revenue from federal Title IV programs and to maintain their accreditation, certain of CECO's schools must place 65 percent of their graduating students in the jobs." If one school fails to place 65% or more students in such jobs, it faces loss of accreditation and then also its eligibility to receive Title IV funding, hence the lawsuit.

The plaintiff claims that Career Education Corp. is faced with accusations that it falsely represented to students and accreditors that certain schools in its Health Education and Art & Design programs achieved a 65% post-graduate student employment rate, when in reality the placement rates were often much lower.

Career Education Corp. is also being investigated by the Attorneys General of New York and Florida in connection with its business practices.

Those who are a current long term investors in CECO shares, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    mail@shareholdersfoundation.com
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108