SOURCE: Izard Nobel LLP

September 01, 2010 17:37 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Corinthian Colleges, Inc.

WEST HARTFORD, CT--(Marketwire - September 1, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of purchasers of the securities of Corinthian Colleges, Inc. ("Corinthian" or the "Company") (NASDAQ: COCO) between October 30, 2007 and August 19, 2010 (the "Class Period").

The Complaint charges that Corinthian and certain of its officers and directors violated federal securities laws by making a series of materially false and misleading statements. Specifically, the Complaint alleges defendants failed to disclose: (i) Corinthian overstated its growth prospects by engaging in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; (ii) the Company's financial results were overstated in that the Company's colleges inflated tuition costs and its student loan repayment rates were well below levels required for participation in federal loan programs; (iii) Corinthian failed to maintain adequate systems of internal operational or financial controls; and (iv) based on the foregoing, defendants lacked a basis for their positive statements about the Company, its prospects and growth.

If you are a member of the class, you may, no later than November 1, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/corinthiancolleges/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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