An investigation on behalf of investors in Career Education Corp. (Public, NASDAQ:CECO) over potential violations of federal securities laws by Career Education and others was announced.
According to the investigation by a law firm the investigation over potential violations of the federal securities laws focuses on the following events: On December 17, 2009, the U.S. Department of Education issued a letter to the Higher Learning Commission of the North Central Association of Colleges ("HLC") indicating that American InterContinental University ("AIU"), a unit of Career Education, had issues related to AIU’s assignment of credit hours to certain undergraduate and graduate programs. Specifically, the letter stated as follows: “ During the course of our inspection work on regional accrediting agencies’ standards for program length and credit hours, we identified a serious issue that requires your immediate attention. The Higher Learning Commission (HLC) of the North Central Association of Colleges and Schools performed a comprehensive review to evaluate American InterContinental University (AIU) for initial accreditation and found issues related to AIU’s assignment of credit hours to certain undergraduate and graduate programs.” Although the government redacted the explanation of what the problem was in the letter posted on its web site, including the redaction of numerous pages of text, the letter also states that on April 3, 2009 AIU’s Chancellor had submitted a response to the issues raised by HLC, so the investigation. On December 17, 2009, Career Education’s common stock declined by $5.47 per share, about 19.3%, to close at $22.88 per share on substantially greater than average volume.
Career Education Corporation, located in Hoffman Estates, IL, is an on-ground provider of private, for-profit, postsecondary education in the Untied States and has a presence in online education. The Company’s schools and universities prepare students for professional careers through the operation of more than 75 on-ground campuses located throughout the United States, France, Canada, Italy and the United Kingdom and three online academic programs. Career Education Corp. reported in 2007 Total Revenue of $1.74743billion with a Net Income of $59.55million and in 2008 Total Revenue of $1.70535billion with a Net Income of $60.14million. Shares of Career Education Corp. (CECO) traded recently at $24.51 per share, down from its 52weekHigh of $28.87 per share, and over $35 per share in 2007.
Those who are investors in Career Education Corp. (Public, NASDAQ:CECO) or have information relating to this investigation, should contact the Shareholders Foundation at: email@example.com or at: +1 (858) 779 – 1554
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