Block & Leviton LLP Investigates Bridgepoint Education, Inc. and Certain of Its Officers and Directors for Possible Violations of the Federal Securities Laws
BOSTON, May 12, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving Bridgepoint Education, Inc. ("Bridgepoint" or the "Company") (NYSE: BPI) following the Company's disclosure that it would be unable to file its 10-Q for the quarter ending March 31, 2014.
Specifically, the Company is revising its accounting procedures and financial results in response to a comment letter it received from the Securities and Exchange Commission ("SEC") in connection with the Company's revenue recognition policy and accounting for doubtful accounts. Bridgepoint has determined that a proper accounting, under SEC requirements, would lead to decreases in its revenues and earnings.
Daniel Devine, Bridgepoint's CFO, stated that "under the previous revenue recognition policy, revenues recognized subsequent to a student losing financial aid eligibility and not collected were included in our bad dept expense. Going forward, our policy will exclude these revenues, and will result in a corresponding decrease to our bad debt expense that will be realized over the subsequent three quarters."
Bridgepoint cautioned investors that its investigation continues. As such, it is possible that further investigation will reveal additional financial statements that need to be restated.
News of the financial irregularities shocked the market, and the Company's stock price fell immediately. This drop in value cost Bridgepoint's investors collectively approximately $85 million in just the first hours of trading following the announcement, and the stock's price continues to plummet, further damaging investors.
Block & Leviton's investigation seeks to determine, among other things, whether Bridgepoint or its officers and directors have violated the federal securities laws. If you have any information relevant to this investigation, or have questions about your legal rights, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com. Whistleblowers with direct knowledge of any financial improprieties at the Company are particularly encouraged to contact the firm. Confidentiality is assured.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.
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BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP