Hagens Berman Investigates K12 Inc., Informs Investors of Lead Plaintiff Deadline

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Feb 06, 2012, 08:00 ET

BERKELEY, Calif., Feb. 6, 2012 /PRNewswire/ -- Hagens Berman today announced it is investigating K12 Inc. ("K12" or "the Company") (NYSE: LRN) following the filing of a securities class-action lawsuit alleging K12 made false and misleading statements to its investors.

Individual or institutional investors who purchased or otherwise acquired shares of K12, Inc. common stock between Sept. 9, 2009, and Dec. 16, 2011, and have significant losses are encouraged to contact Hagens Berman Partner Reed R. Kathrein at (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also email Mr. Kathrein at [email protected] or can contact the firm online by visiting www.hbsslaw.com/LRN.

The deadline to move the court for lead plaintiff is April 2, 2012.

K12 Inc. is an education company that offers online learning opportunities for students in kindergarten through 12th grade. The Company provides virtual public schools with access to course catalogues and other educational support services.

The lawsuit, filed in the United States District Court for the Eastern District of Virginia on Jan. 30, 2012, claims that K12 and certain of its officers issued false statements regarding the true financial condition and outlook of the company. Specifically, the complaint alleges that the company failed to disclose that it passed students regardless of their performance and issued false statements about the performance of its students compared to other traditional schools.

The company reported strong financial results in the third quarter of 2011, including a nearly 35 percent increase in revenue compared to the third quarter of 2010. However, on Dec. 12, 2011, a New York Times article was released claiming that K12 Inc. students were failing to meet grade-level performance and that student-to-teacher ratios were as high as 270 to one.

Following publication of the article, the price of K12 stock dropped nearly 35 percent, closing under $19.00 on Dec. 16, 2011.

"K12 and its executives repeatedly stressed that its students were performing at or above the level of average students in traditional schools, yet it now appears the opposite may have been the case," said Mr. Kathrein. "We will continue to investigate these allegations to determine whether K12's statements constitute a violation of the securities laws, which prohibit false or misleading statements to investors."

Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.

Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, [email protected]

SOURCE Hagens Berman Sobol Shapiro LLP