NEW YORK, July 21, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of K12 Inc. ("K12" or the Company) (NYSE: LRN). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether K12 and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On October 27, 2015, Stanford's Center for Research on Education Outcomes ("CREDO") published a study regarding online charter schools, specifically mentioning K12, and published a press release summarizing the study's results. In the press release, CREDO stated that "[i]nnovative new research suggests that students of online charter schools had significantly weaker academic performance in math and reading, compared with their counterparts in conventional schools." That same day, K12 reported disappointing financial results for the first quarter of fiscal year 2015. On these disclosures, K12's stock price fell $1.93 per share, or 15.8%, to close at $10.25 on October 27, 2015. After the market closed that day, K12 filed a Quarterly Report on Form 10-Q with the SEC for the same fiscal quarter, disclosing therein that the Company had received a subpoena from the Attorney General of the State of California, Bureau of Children's Justice in connection with an investigation styled "In the Matter of the Investigation of: For-Profit Virtual Schools."
Over the following three days, K12's stock price fell a cumulative $0.54 per share, or 5.2%, to close at $9.71 on October 30, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 80 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