Block & Leviton LLP Investigates Education Management Corporation After The Company Revealed It Would Delay The Release Of Its 10-K

BOSTON, Sept. 17, 2014 /PRNewswire/ -- Shares of Education Management Corporation ("EDMC" or the "Company") (NASDAQ: EDMC) have plunged precipitously on news that the Company will be unable to file its Form 10-K for the fiscal year ended June 30, 2014, because of issues raised by the United States Securities and Exchange Commission ("SEC"). 

On September 16, 2014, news broke that the Company would be unable to file its Form 10-K in a timely manner because EDMC and the SEC have been unable to resolve comments by the Division of Corporate finance of the SEC regarding revenue recognition and bad debt reserves recorded upon student withdrawals from school.  The Company may have been put on notice by similar issues regarding the revenue recognition for student withdrawals which plagued Higher One Holdings, Inc., which also recently faced government scrutiny.

Upon absorbing the news, shares of EDMC plummeted in the market, falling approximately 10% between Tuesday, September 16, 2014, the last day prior to the revelations and Wednesday, September 17, 2014, when the Company announced its reconciliation issues with the SEC.  The delayed filing thus resulted in a loss of approximately $15 million in market value to EDMC investors.

Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties. 

If you purchased EDMC securities and suffered a loss in value because of the recent loss of value and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at [email protected].  Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws.  The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.

This notice may constitute attorney advertising. 

Contact:         
BLOCK & LEVITON LLP
Steven P. Harte
(617) 398-5600
[email protected]

SOURCE Block & Leviton LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED