ITT Educational Services (ESI) Sued For Violations of Securities Laws

By on March 13, 2013

A class action lawsuit was filed against ITT Educational Services, Inc. (NYSE:ESI) alleging the education company issued materially false and misleading statements to the investment public.  As a result of the false statements, ITT shares traded at artificially inflated prices between April 22, 2010 and February 25, 2013, the lawsuit alleges.

On February 22, ITT disclosed that the Securities and Exchange Commission (SEC) had been looking into the company’s participation in private student-loan agreements.  ITT said it received a subpoena from the SEC on February 8.  The subpoena asked for documents related to ITT’s 2009 loan risk-sharing agreement and the company’s PEAKS Private Student Loan Program (PEAKS Program).  In reaction to the news, shares of ITT fell nearly 17%.

If you purchased shares of ITT between April 22, 2010 and February 25, 2013, you may file a motion with the court no later than May 10, 2013, and request that the court appoint you as lead plaintiff.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  To be appointed lead plaintiff, the court must decide that your claim is typical of the claims of other class members and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by your decision of whether or not to serve as a lead plaintiff.  You can recover as an absent class member without moving for lead plaintiff.  The action discussed here was not filed by Milberg.

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