K12, Inc. Shareholder Investigation -- The Briscoe Law Firm and Powers Taylor, LLP Announce Investigation of Possible Breaches of Fiduciary Duty by the Officers and Directors of K12, Inc.
DALLAS, Feb. 2, 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 K12, Inc. ("K12" or "LRN") (NYSE: LRN) related to potential securities violations between September 9, 2009, and December 16, 2011 (the "Class Period").
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"Recent revelations about improper and deceptive recruiting practices, purposeful inflation of the company's student enrollment and revenue figures, and claims that the company's Board of Directors and certain officers wasted company assets and mismanaged the company have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by K12's officers and directors. Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of K12/LRN stock for all shareholders, including seeking removal of certain officers and directors and monetary payments," said shareholder rights attorney Willie Briscoe.
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, K12 and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the Class Period, defendants misrepresented or failed to disclose that: (a) K12 engaged in improper and deceptive recruiting and sales strategies, aimed at enrolling students regardless of their ability to successfully complete the curriculum; (b) the company failed to disclose administrative pressure to pass students despite poor or nonexistent academic performance, so as to maintain high enrollment levels and continued government payments; and (c) K12 failed to maintain its students' math and reading performance at statewide grade-level performance. It is claimed that as a result of the foregoing, defendants' statements regarding K12's empirical academic performance, financial performance, and business and financial prospects were false and misleading and lacked a reasonable basis. In addition, on December 12, 2011, the New York Times published an articled discussing in detail K12's K12's high pressure sales strategies to enroll students, administrative pressure to pass enrolled students regardless of academic performance, and the overall failure of K12 students to maintain grade-level performance in math and reading. Within a few days of this news, K12 shares plummeted by more than 34%, from a closing price of $28.79 per share on December 12, 2011, to only $18.90 per share on December 16, 2011.
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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