Career Education Corporation (NASDAQ:CECO) received notice that the United States District Court for the Northern District of Illinois dismissed, with prejudice, the amended complaint in McSparran v. Larson, et al., a shareholder derivative action against the company and certain of its current and former officers and directors. In so doing, the Court terminated the litigation, first filed against the company in January 2004, and amended by the plaintiffs in June 2006, after the Court’s initial dismissal of the action.
According to the Court, “The amended complaint provides no substantial reason to question the independence of a majority of CEC’s board of directors.” The Court dismissed the case with prejudice, terminating the matter and thus prohibiting plaintiffs from amending their pleadings.
“We are very pleased with the Court’s ruling and believe that the Court properly recognized the right of the board of directors to manage the company’s affairs,” said Mary Ellen Hennessy of Katten Muchin Rosenman LLP, lead counsel for the defendants.
About Career Education Corporation
The colleges, schools and universities that are part of the Career Education Corporation (CEC) family offer high quality education to almost 90,000 students across the world in a variety of career-oriented disciplines. The 80-plus campuses that serve these students are located throughout the U. S., Canada, France, United Kingdom and the United Arab Emirates and offer Doctoral, Master’s, Bachelor’s and Associate degrees and diploma and certificate programs. Approximately one third of students attend the web-based virtual campuses of American InterContinental University Online and Colorado Technical University Online.
Career Education is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, the Le Cordon Bleu Schools North America, the Harrington College of Design, the Brooks Institute of Photography, the Katharine Gibbs Schools, American InterContinental University, Colorado Technical University, and Sanford-Brown Institutes and Colleges. The mission of CEC, through its schools, its educators and its employees, is education – their primary goal, to enable students to graduate successfully and pursue rewarding careers.
For more information see www.careered.com. The company’s web site also has a detailed listing of individual campus locations and web links for its 80-plus colleges, schools and universities.