SOURCE: Gilman and Pastor, LLP

October 01, 2010 12:16 ET

Notice of Deadline for Plaintiff Submissions for Education Management Corporation EDMC 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 October 12, 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 Western District of Pennsylvania against Education Management Corporation ("Education Management") and certain of Education Management's officers (collectively "Defendants") on behalf of a class consisting of all purchasers of Education Management common stock (NASDAQ: EDMC) during the period between October 2, 2009 and August 3, 2010, inclusive (the "Class Period"). 

The Complaint alleges that Education Management 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. 

On or about August 3, 2010, the United States General Accounting Office ("GAO") released a report which concluded that for-profit educational institutions like Education Management 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, shares of Education Management collapsed, falling almost 18% in the days that followed.

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

(1) Defendants inflated Education Management's results by inducing students to enroll in American 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.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Education Management during the Class Period. If you purchased or otherwise acquired Education Management shares during the Class Period, between October 2, 2009 and August 3, 2010, and either lost money on the transaction or still hold the shares, you may 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 an Education Management 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

  • 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