Milberg LLP Announces Filing of Class Action Lawsuit against Bridgepoint Education, Inc. and Certain of Its Officers
NEW YORK, Feb. 24, 2015 /PRNewswire/ -- Milberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of purchasers of Bridgepoint Education, Inc., ("Bridgepoint" or the "Company) (NYSE: BPI) securities during the period of August 7, 2012 to May 30, 2014, ("the Class Period").
The complaint alleges that throughout the Class Period, Bridgepoint and certain of its officers violated the federal securities laws by disseminating false and misleading statements to the investing public.
Specifically, the Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company had applied an improper revenue recognition methodology to assess collectability of funds owed by students; (2) as a result, the Company's revenues and financial results were overstated; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) the Company lacked adequate internal and financial controls; and (5), as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On May 12, 2014, Bridgepoint revealed that it was unable to timely file its Quarterly Report for the 2014 fiscal first quarter because the Securities and Exchange Commission ("SEC") had informed the Company that a reassessment of its revenue recognition policy was necessary. According to the Company, the SEC was requiring Bridgepoint to reassess whether collectability was reasonably assured on a student-by-student basis when recognizing revenue after a student's initial enrollment upon certain changes in circumstances, such as when a student loses financial aid eligibility. Following this news, shares of Bridgepoint declined nearly 9%, to close on May 12, 2014, at $14.51 per share, on unusually heavy volume.
On May 30, 2014, Bridgepoint announced that its financial statements filed with the SEC for the years ended December 31, 2011 and December 31, 2012, as well as the financial statements issued for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, should no longer be relied upon. According to the Company, these financial statements contained errors related to revenue recognition that resulted in material misstatements of revenue, bad debt expense and accounts receivable.
If you purchased Bridgepoint shares between August 7, 2012 and May 30, 2014, you may, no later than April 27, 2015, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
If you would like to learn more about this potential matter, please contact the following attorney:
Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: [email protected]
SOURCE Milberg LLP
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