SOURCE: Kaplan Fox & Kilsheimer LLP

October 04, 2010 20:30 ET

Kaplan Fox Files Securities Class Action on Behalf of Purchasers of Apollo Group, Inc. Common Stock With Expanded Class Period of February 12, 2007 Through August 3, 2010; Reminds Investors of October 15, 2010 Lead Plaintiff Deadline

NEW YORK, NY--(Marketwire - October 4, 2010) -  Kaplan Fox & Kilsheimer LLP ( has filed a class action suit against Apollo Group, Inc. ("Apollo Group" or the "Company") (NASDAQ: APOL) that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of Apollo's common stock during the period February 12, 2007 through August 3, 2010, inclusive (the "Class").

The case is pending in the United States District Court for the District of Arizona. A copy of the complaint may be obtained from Kaplan Fox or the Court.

The Complaint alleges that throughout the Class Period, Defendants represented that Apollo's student enrollment in its programs, and its revenues and profits were growing, but the positive statements regarding the Company's performance and growth made by defendants were materially false and misleading when made, and were known by defendants to be false or were recklessly disregarded because the defendants failed to disclose that the Company's purported growth and profits were achieved through an improper course of conduct, including fraudulently inducing students to enroll in Apollo's scholastic and educational programs and engaging in other manipulative recruiting tactics. Further, the Complaint alleges that during the Class Period Apollo insiders sold over $450 million dollars of their privately held Apollo stock at artificially inflated prices.

The Complaint further alleges that the truth about Apollo's improper recruiting tactics began to emerge on January 7, 2010, when, after the close of trading, the Company issued a press release disclosing, among other things, that the U.S. Department of Education expressed a concern that some students had enrolled and began attending classes before completely understanding the implications of enrollment, including their eligibility for student financial aid. On January 8, 2010, the next trading day, Apollo shares declined from a close on January 7, 2010 of $63.94 per share to close at $60.50 per share, a decline of $3.44 per share or approximately 5.4% on heavier than usual volume.

Then, the Complaint alleges, on August 3, 2010, the United States Government Accounting Office (the "GAO") published a report finding that certain for-profit schools (i) used deceptive recruiting practices; (ii) inflated their tuition costs; and (iii) engaged in other "troubling" practices. The Complaint alleges that, as a result of these disclosures, between August 3, 2010, and August 6, 2010, shares of the Company declined from a close of $47.14 per share on August 2, 2010, to a close of $42.83 per share on August 5, 2010, a decline of $4.34 per share or approximately 9%.

If you are a member of the proposed Class, you may move the court no later than October 15, 2010 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at

Contact Information

  • If you have any questions about this Notice, the action, your rights, or your interests, please contact:

    Jeffrey P. Campisi
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address:

    Laurence D. King
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: