Career Education Corporation Alert: The Briscoe Law Firm and Powers Taylor, LLP Investigate Possible Breaches of Fiduciary Duty by the Officers and Directors of Career Education Corporation

DALLAS, Jan. 27, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Career Education Corporation ("Career Education" or "CECO") (NASDAQ: CECO) related to potential securities violations between January 1, 2009 and November 1, 2011 (the "Class Period").

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If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [email protected], or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at [email protected].  There is no cost or fee to you.

In a recently filed federal class action complaint, Career Education and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934.  Specifically, the complaint alleges that various public statements by the defendants during the Class Period were each materially false and misleading in that defendants knew or recklessly disregarded that: (i) defendants represented that CECO's retention rates and employment, or "placement" rates, following graduation were higher than they actually were; (b) Career Education's purported placement rates were achieved through an improper course of conduct and a manipulative use of the term "employment"; and (c) Career Education reported inflated placement rates to the Accrediting Counsel for Independent Colleges and Schools, the Accrediting Commission of Career Schools and Colleges, and its other accrediting agencies.  As a result, it is alleged that defendants misrepresented the financial condition of the company, including its ability to continue to receive Title IV funding, to the investing public.  Further, on May 17, 2011, Career Education revealed that it had received a subpoena from the New York Attorney General seeking documents in connection with the New York AG's investigation of whether CECO and certain of its schools complied with New York consumer protection and securities laws.  On November 2, 2011, the day after Career Education announced its quarterly earnings reports confirming that its retained outside counsel had identified certain placements that lacked sufficient supporting documentation, CECO shares plummeted nearly 50% to close at $8.32 per share from the previous day's close of $15.95 per share on very heavy trading volume.

The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

SOURCE Powers Taylor, LLP

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