SAN FRANCISCO, May 13, 2020 /PRNewswire/ -- Hagens Berman urges investors in Grand Canyon Education, Inc. (NASDAQ: LOPE) who have suffered significant losses to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Grand Canyon Education, Inc. (LOPE) Securities Class Action:
The complaint alleges that throughout the Class Period, Defendants inflated Grand Canyon's financial results by using GCU as an off-balance-sheet entity to which Grand Canyon was able to funnel expenses and costs in exchange for a disproportionate amount of revenue. Defendants also repeatedly made false and misleading statements to investors describing GCU as a "non-profit" and "independent" institution and misstating Grand Canyon's role as a third-party provider of education services.
The truth emerged through a series of disclosures beginning on Sept. 9, 2019, when Citron Research published a scathing report about the Company, accusing Grand Canyon of "stuffing GCU with expenses to inflate its own profitability." This news drove the price of LOPE shares sharply lower that day.
Then, on Nov. 6, 2019, after the Company announced the U.S. Department of Education had denied its application for designation of GCU as a non-profit, the price of LOPE shares again fell sharply lower.
Finally, on Jan. 28, 2020, Citron published another report in which it compared Grand Canyon to Enron, and accused it of "using Grand Canyon University as a liability dumping ground/cookie jar in order to manipulate earnings and cover up for the headwinds they face due to a challenging environment in for-profit online education." This news drove the price of LOPE shares again sharply lower.
"We're focused on investors' losses and proving LOPE secretly dumped costs on Grand Canyon to appear more profitable," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers:Persons with non-public information regarding LOPE should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:[email protected].
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