NEW YORK, Nov. 7, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against ITT Educational Services, Inc. ("ITT" or the "Company")(NYSE: ESI) and certain of its officers. The class action, filed in United States District Court, Southern District of Indiana, Indianapolis Division, and docketed under 14-cv-01651, is on behalf of a class consisting of all persons or entities who purchased ITT securities between April 26, 2013 and September 19, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased ITT securities during the Class Period, you have until December 1, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
ITT is a leading provider of postsecondary degree programs in the United States. The Company's institutes offer associate, bachelor, and master degree programs, as well as non-degree diploma programs.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) ITT's financial statements contained errors related to the accounting of its PEAKS Trust and PEAKS Program; (2) the Company lacked adequate internal controls over financial reporting; and (3) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 21, 2014, the Company announced that it received an inquiry to the Office of the Chief Accountant ("OCA") of the SEC related to the accounting treatment for the variable interest entity involved in the PEAKS Program. On this news, the Company's shares fell $2.24, or over 7%, to close at $27.71 per share on March 24, 2014.
On May 22, 2014, the Company announced that it was withdrawing its 2014 forecast and investors should no longer rely upon it due to uncertainties related to the accounting of its PEAKS Trust and the Company's guarantee obligations under the PEAKS Program. On this news, the Company's shares fell $5.30, or over 20%, to close at $20.50 per share on May 22, 2014.
On September 19, 2014, the Company announced that it was notified by the Division of Enforcement of the SEC that it made the preliminary determination to recommend that the SEC file an enforcement action against the Company alleging violations of Sections 10(b), 13(a) and 13(b)(2) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13 and 13a-15 under the Exchange Act. The potential enforcement action stemmed from a previously disclosed SEC investigation concerning the Company's two private education loan programs for its students. On this news, the Company's shares fell $2.70, or over 35%, to close at $4.95 per share on September 19, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP