Zamansky & Associates Still Investigating Grand Canyon Education (LOPE)
Zamansky & Associates is continuing its investigation into Grand Canyon Education Inc. (NASDAQ: LOPE)(”Grand Canyon” or the “Company”) for fraud perpetrated on its shareholders. So far, Grand Canyon has not been the subject of a shareholder lawsuit, while most of its competitors have been hit. Class action lawsuits were filed by investors of Apollo Group, Lincoln Education, Career Education Corporation, DeVry Institute, Strayer Education and others for-profit education companies.
During early 2010, Grand Canyon saw its stock price jump from the mid-teens to over $25 per share. This rise coincided with sharp increases in revenues and enrollment at the Company. However, Grand Canyon’s success may be tied to illegal compensation practices that were identified in the qui tam action against the Company which it settled for $5.2 million. Shareholders may wonder how much of the Company’s success was based upon these or other wrongful practices which artificially inflated its results and which are likely to end with the recent regulatory crackdowns. Grand Canyon’s quarterly report for Q3 2010 acknowledges that it is still the subject of a US Department of Education program review initiated in July 2010 over compensation practices and whether its programs sufficiently train graduates to maintain eligibility to qualify under federal loan programs.
If you were a shareholder or purchased securities in Grand Canyon over the last year, you may wish to contact us about recovering your losses or protecting your rights. Please call Jake at (212) 742-1414 or email jake@zamansky.com.