NEW YORK, April 16, 2019 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announced that less than three weeks remain to apply to be lead plaintiff in a securities fraud litigation on behalf of shareholders of Bridgepoint Education, Inc. ("Bridgepoint" or the "Company") (NYSE: BPI) who purchased Bridgepoint securities between March 8, 2016 and March 7, 2019 ("Class Period"). The lawsuit, filed in the United States District Court for the Central District of California, seeks to recover investors' damages under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
According to the lawsuit, the complaint claims that the defendants made false and/or misleading statements and/or omitted disclosing information with respect to (1) processes related to the recording of revenue (which were inaccurate), (2) inadequate internal controls, (3) material accounting mistakes related to revenue, debts, and deferred revenue; and, as a result (4), Bridgepoint produced public statements that were materially false and misleading.
On March 6, 2019, during aftermarket hours, Bridgepoint disclosed that "the Company's previously issued unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2018 (the "Restated Periods"), should no longer be relied upon because of errors. Additionally, the Company's earnings and press releases and similar communications to the extent that they relate to our financial statements for the Restated Periods should no longer be relied upon." The Company further disclosed that "the Company determined that the process used for recording the revenue for the Full Tuition Grant program portion of our student contracts and the related judgments and estimates were not designed with sufficient precision. As a result, the Company identified errors, relating to revenue, provision for bad debts, accounts receivable and deferred revenue, which resulted in the overstatement of revenue and expenses for the Restated Periods. The errors described above were material to the Restated Periods..."
On this news, shares of Bridgepoint fell $3.21 per share, or over 34%, from its previous closing price to close at $6.22 per share on March 7, 2019.
If you wish to serve as lead plaintiff in the Bridgepoint class action, you must move the court no later than May 6, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you take no action, you may remain an absent class member.
If you purchased Bridgepoint securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/bridgepoint-education-inc-bpi-lawsuit-class-action-fraud-stock-116/ or contact Joe Seidman toll free at (877) 779-1414 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.
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SOURCE Bernstein Liebhard LLP