SOURCE: Gilman and Pastor LLP

October 08, 2010 11:35 ET

Gilman and Pastor LLP Files a Securities Fraud Class Action Lawsuit Against Education Management Corporation (EDMC) on Behalf of Stock Owners/Investors and Urges Investors to Inquire as to the Class Action Lawsuit Prior to the October 11, 2010 Lead Plaintiff Deadline

BOSTON, MA--(Marketwire - October 8, 2010) -  Gilman and Pastor LLP files a class action lawsuit on October 8, 2010 on behalf of all stock owners/investors who purchased or otherwise acquired shares in the Education Management common stock (NASDAQ: EDMC) during the period between October 2, 2009 and August 16, 2010, inclusive (the "Class Period"). 

The Complaint alleges that Education Management Corporation ("Education Management") and certain of Education Management's officers (collectively "Defendants") violated federal securities fraud laws by issuing a materially false and misleading registration statement and proxy-prospectus in connection with an October 2, 2009 Initial Public Offering in violation of the Securities Act of 1933 and by making a series of materially false and misleading statements related to Education Management's business operations in violation of the Securities Exchange Act of 1934. These statements were false because:

(1) Defendants inflated Education Management's results by inducing students to enroll in Education Management's scholastic and educational programs and engaged in other manipulative recruiting tactics;
(2) Defendants had materially overstated Education Management's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, thereby artificially inflating Education Management's reported results and future growth prospects; and
(3) Education Management did not maintain adequate systems of internal operation or financial controls which would have permitted Education Management's reported operational statements and foreseeable growth prospects to be true and accurate or reliable.

If you purchased or otherwise acquired Education Management shares during the Class Period, between October 2, 2009 and August 16, 2010, and either lost money on the transaction or still hold the shares, you may contact Gilman and Pastor by no later than Monday, October 11, 2010 to discuss your rights, including as to the recovery of your losses, or to obtain additional information, at www.investment-losses.com, by email at rpotkay@gilmanpastor.com or by calling toll-free (877) 428-7374.

Gilman and Pastor LLP is also representing investors with similar claims against other For-Profit Education companies, including but not limited to the Apollo Group, Inc., Lincoln Educational Services, Corp., American Public Education and Corinthian College. 

Gilman and Pastor, LLP is one of the country's premier national law firms that represents institutional and individual investors in class actions, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 30 years and has been recognized for its reputation for excellence by the courts. You may retain Gilman and Pastor without financial obligation or cost to you, or you may retain other counsel of your choice. 

Contact Information

  • CONTACTS:
    Kenneth G. Gilman, Esquire
    Gilman and Pastor, LLP
    16 Fourteenth Avenue
    Wareham, MA 02571
    kgilman@gilmanpastor.com
    (877) 428-7374
    (508) 291-3258 FAX