SOURCE: Rosen Law Firm, P.A.

August 13, 2010 20:00 ET

The Rosen Law Firm Announces Securities Class Action Against Education Management Corporation -- EDMC

NEW YORK, NY--(Marketwire - August 13, 2010) -  The Rosen Law Firm, P.A. today announced that a class action lawsuit has been filed on behalf of purchasers of the common stock of Education Management Corporation ("EDMC" or the "Company") (NASDAQ: EDMC) during the period from October 2, 2009 through and including August 3, 2010 (the "Class Period"), including purchasers in the Company's October 2, 2009 initial public offering.

To join the EDMC class action, go to the website at http://www.rosenlegal.com or call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or you may also email lrosen@rosenlegal.com or pkim@rosenlegal.com for information on the class action.

The Complaint asserts claims under the Securities Act of 1933 and Securities Exchange Act of 1934 against EDMC, certain of its officers and directors, and others in connection with the issuance of materially false and misleading statements about EDMC's business, operations and prospects. Particularly, the Complaint alleges that defendants engaged in undisclosed and illicit recruiting activities for Company's educational institutions, which had the effect of rendering the Company's statements about its business and prospects to be false and misleading. The Complaint also states that the Company lacked appropriate internal controls, contrary to the Company's representations to investors.

On August 3, 2010 the United States General Accounting Office issued a report that concluded that for-profit educational institutions like EDMC had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the government for the cost of such education. As a result of these adverse disclosures, the price of EDMC stock dropped damaging investors.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.

If you wish to serve as lead plaintiff, you must move the Court no later than October 11, 2010. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll-free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information

  • Contact Information:
    Laurence Rosen, Esq.
    Phillip Kim, Esq.
    The Rosen Law Firm P.A.
    350 5th Avenue, Suite 5508
    New York, New York 10118
    Tel: (212) 686-1060
    Weekends Tel: (917) 797-4425
    Toll Free: 1-866-767-3653
    Fax: (212) 202-3827
    Email Contact
    Email Contact

    www.rosenlegal.com