BOSTON, Feb. 28, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving ITT Educational Services, Inc. ("ITT Educational" or the "Company") (NASDAQ: ESI) following the Company's disclosure of an investigation being conducted by the Securities and Exchange Commission ("SEC") relating to the Company's involvement in private student-loan agreements.
More specifically, in January 2013, ITT Educational agreed to pay $46 million to SLM Corp. (US: SLM), the country's biggest student lender, commonly known as Sallie Mae, to settle a lawsuit stemming from a risk-sharing agreement on loans. According to a filing with the SEC, the Company was made aware of the resulting investigation on February 8, 2013. A subpoena issued by the SEC has requested documents related to a 2009 loan risk-sharing agreement and its PEAKS Private Student Loan Program.
News of the SEC investigations shocked the market and the Company's stock price has fallen by more than 20% since the market closed on February 22, 2013 – the last trading day prior to the disclosure. Based on the information to date, it appears that the Company's wrongdoing spanned from January 15, 2010 to February 22, 2013.
Block & Leviton's investigation seeks to determine, among other things, whether ITT Educational and 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 Philip J. Marino of Block & Leviton LLP at (617) 398-5600 or email him at Philip@blockesq.com.
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 50 years.
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SOURCE Block & Leviton LLP