Faruqi & Faruqi, LLP Announces Investigation of Career Education Corp.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Career Education Corporation (“Career Education” or the “Company”) (Nasdaq: CECO).
On August 3, 2011, Career Education disclosed that the Company identified “improper practices … relating to the determination of reported placement rates.” In response, the Company authorized an investigation under the direction of outside legal counsel Dewey & LeBoeuf. On this news, Career Education share price declined by $5.76, closing at $16.11 on August 8.
Then, on November 1, 2011, the Company shocked the market with the resignation of its CEO Gary McCullogh, relating to what the Company termed the “complexities of the regulatory environment.” The Company disclosed that “Dewey’s investigation confirmed the existence of improper placement determination practices,” concluding “Dewey identified certain placements that lacked sufficient supporting documentation.” Career Education also reported that it received a subpoena from the Attorney General of the State of New York (“NYAG”). The NYAG is investigating whether the Company has complied with New York state consumer protection, securities, finance and other laws.
On this news, Career Education stock plunged nearly 55% from $16.13 per share at close on October 31, 2011 to $7.37 per share at close on November 3, 2011.
If you purchased Career Education securities between January 1, 2006 and the present and would like to discuss your legal rights, you can contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Career Education’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.