Ryan & Maniskas, LLP Announces Investigation of ITT Educational Services Inc.
WAYNE, Pa., March 3, 2014 /PRNewswire/ -- Ryan & Maniskas, LLP announces that it is investigating potential claims against ITT Educational Services Inc. ("ITT" or the "Company") (NYSE: ESI). The investigation concerns whether ITT and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased shares of ITT and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/esi. You may also email Mr. Maniskas at firstname.lastname@example.org.
On February 26, 2014, Barron's published a report that the Consumer Financial Protection Bureau ("CFPB") filed a lawsuit against ITT Educational regarding its credit practices.
The report states: "The CFPB's lawsuit alleges that ITT Educational encouraged new students to enroll at ITT Educational by providing them funding for this tuition gap with a zero-interest loan called 'Temporary Credit.' This loan typically had to be paid in full at the end of the student's first academic year. But ITT Educational knew from the outset that many students would not be able to repay their Temporary Credit balances or fund their next year's tuition gap."
"The CFPB lawsuit alleges that between July 2011 and December 2011, ITT [Educational] pushed its students into repaying their Temporary Credit and funding their second-year tuition gaps through high-cost private student loan programs. Students were left in the dark about the fact that taking out these high-cost loans would be required to continue their studies. However, ITT Educational's CEO revealed in investor calls that converting the temporary loans to long-term loans was the company's 'plan all along.'"
Following this news, shares of ITT Educational fell $3.10, or more than 9%, to close at $32.40 on February 26, 2014.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP