SOURCE: Gilman and Pastor, LLP

October 01, 2010 12:17 ET

Notice of Deadline for Plaintiff Submissions for Corinthian Colleges, Inc. COCO Stock Owners/Investors Who Have Losses in Excess of $50,000 to Inquire as to Owner/Investor Plaintiff's Position in the Securities Fraud Class Action Lawsuit Prior to the November 1, 2010 Lead Plaintiff Deadline

BOSTON, MA--(Marketwire - October 1, 2010) -  Gilman and Pastor, LLP announces Notice of Deadline in the securities fraud class action lawsuit which was commenced in the United States District Court for the Central District of California against Corinthian Colleges, Inc. ("Corinthian") and certain of Corinthian's officers (collectively "Defendants") on behalf of a class consisting of all purchasers of Corinthian common stock (NASDAQ: COCO) during the period between April 1, 2007 and August 19, 2010, inclusive (the "Class Period"). 

The Complaint alleges that Corinthian violated federal securities fraud laws by issuing a series of materially false and misleading statements related to Corinthian's business operations in violation of the Securities Exchange Act of 1934. The defendants issued a series of materially false and misleading statements regarding Corinthian's compliance with governmental regulations, and Corinthian's growth and foreseeable profitability.

On or about August 3, 2010, the United States General Accounting Office ("GAO") released a report which concluded that for-profit educational institutions like Corinthian and other for-profit educational institutions had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of said education. Following the release of the GAO report, the U.S. Department of Education initiated an investigation of Corinthian practices and shares of Corinthian collapsed, falling almost 17% in the following trading days.

The Corinthian securities class action complaint alleges that the Defendants made positive statements in press releases and SEC filings regarding Corinthian's operational performance and future growth projections and that these statements were false because:

(1) Defendants inflated Corinthian's results by inducing students to enroll in Corinthian's scholastic and educational programs and engaged in other manipulative recruiting tactics;

(2) Defendants had materially overstated Corinthian's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, thereby artificially inflating Corinthian's reported results and future growth prospects; and

(3) Corinthian did not maintain adequate systems of internal operation or financial controls which would have permitted Corinthian's reported operational statements and foreseeable growth prospects to be true and accurate or reliable.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Corinthian during the Class Period. If you purchased or otherwise acquired Corinthian shares during the Class Period, between April 1, 2007 and August 19, 2010, and either lost money on the transaction or still hold the shares, you may wish to join in this action. If you wish to serve as a lead plaintiff, a party representative that acts on behalf of other class members, you may do so if the Court determines that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain Gilman and Pastor, LLP, or other counsel of your choice, to serve as your counsel in this action.

To discuss your rights as a Corinthian shareholder, including as to the recovery of your losses, or to obtain additional information, please contact Gilman and Pastor, LLP at www.investment-losses.com, by email at rpotkay@gilmanpastor.com or by calling toll-free (877) 428-7374.

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

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