Investor Sues Over Education Management Stock Drop
Career College Central Summary:
An investor has filed a class-action lawsuit against Pittsburgh-based Education Management Corp. seeking to recoup losses resulting from the for-profit college company's run-ins with federal regulators.
The lawsuit contends the investor and others have lost money since August 2012 because the company has come under Justice Department scrutiny for the way it recruited students, and alleged violations of new federal regulations governing federal aid to such students.
EDMC runs 110 schools in 32 states, including trade schools for chefs and artists.
The lawsuit contends the company's running battle with the Justice Department and an effort by the Securities and Exchange Commission to subpoena its records last year has caused its stock to drop.
EDMC trades on the NASDAQ, and its shares were trading at $1.09 Monday morning, down from a 52-week high of $16.94.
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NEW JERSEY HERALD