NEW YORK, NY - (NewMediaWire) - June 18, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Grand Canyon Education, Inc. (“Grand Canyon” or the “Company”) (NASDAQ:LOPE) of the July 13, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Grand Canyon stock or options between January 5, 2018 and January 27, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/LOPE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the District of Delaware on behalf of all those who purchased Grand Canyon common stock between January 5, 2018 and January 27, 2020 (the “Class Period”). The case, The City of Hialeah Employees' Retirement System v. Grand Canyon Education, Inc. et al., No. 1:20-cv-00639 was filed on May 12, 2020, and has been assigned to Judge Maryellen Noreika.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Grand Canyon University (“GCU”) was not a proper non-profit organization as it remained under the control of Grand Canyon, (ii) Grand Canyon was not a third-party service provider to GCU but rather continued to effectively operate the entity, (iii) Grand Canyon employees served as executives of GCU, and (iv) GCU functioned as an off-balance-sheet entity to which Grand Canyon was able to funnel expenses and costs in exchange for a disproportionate amount of revenue, thereby inflating Grand Canyon’s financial results.
On September 9, 2019, short seller Citron Research published a report examining Grand Canyon’s financials and concluding that the Company “is stuffing GCU with expenses to inflate its own profitability and as a result bankrupting GCU.”
On this news, the Company's stock price fell from $114.47 per share on September 9, 2019 to $109.62 per share on September 10, 2019: a $4.85 or 4.24% drop.
Then, after the close of market on November 6, 2019, the Company announced that it had received a letter from the U.S. Department of Education (“DOE”) denying its application for designation of GCU as a non-profit.
On this news, the Company's stock price fell from $91.88 per share on November 6, 2019 to $88.08 per share on November 7, 2019: a $3.80 or 4.14% drop.
Finally, on January 28, 2020, Citron published a second report expanding on the DOE’s findings based on hundreds of pages of supporting documentation from Grand Canyon, which Citron obtained through a Freedom of Information Act (“FOIA”) request. Citron concluded that Grand Canyon was the “educational Enron,” using a “captive non-reporting subsidiary” to “dump expenses and liabilities, while receiving a disproportionate amount of revenue at inflated margins in order to artificially inflate the stock price.”
On this news, the Company's stock price fell from $91.50 per share on January 27, 2020 to $84.07 per share on January 28, 2020: a $7.43 or 8.12% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Grand Canyon’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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