BERKELEY, Calif., March 12, 2012 /PRNewswire/ -- Hagens Berman today reminded investors that only 21 days remain before the April 2, 2012 lead plaintiff deadline in a securities class-action lawsuit filed against K12, Inc. ("K12") (NYSE: LRN).
Investors who purchased or otherwise acquired shares of K12, Inc. common stock between Sept. 9, 2009, and Dec. 16, 2011 (the "class period"), and losses exceeding $100,000 are encouraged to contact Hagens Berman Partner Reed R. Kathrein at (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also email Mr. Kathrein at [email protected] or can contact the firm online by visiting www.hbsslaw.com/LRN.
The suit was filed on behalf of investors who purchased shares of K12 stock during the class period. It alleges that K12, as well as certain of its officers, issued false statements regarding the true financial condition and outlook of the company. Specifically, the complaint alleges that the company deliberately failed to disclose that it regularly passed students regardless of their performance, and issued false statements about the performance of its students compared to other traditional schools.
K12 reported strong financial results in the third quarter of 2011, including a nearly 35 percent increase in revenue compared to the third quarter of 2010.
Then, on Dec. 12, 2011, a New York Times article claimed that K12 Inc. students were failing to meet grade-level performance. It also alleged that student-to-teacher ratios were very high, in some cases as high as 270 to one.
Following publication of the New York Times article, the price of K12 stock dropped nearly 35 percent, closing under $19.00 on Dec. 16, 2011.
Persons with knowledge that may help the investigation are also encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, [email protected]
SOURCE Hagens Berman LLP