Faruqi & Faruqi, LLP is Investigating Bridgepoint Education, Inc. on Behalf of its Shareholders (BPI)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and the enforcement of federal antitrust laws, is investigating potential wrongdoing at Bridgepoint Education, Inc. (“Bridgepoint” or the “Company”) (NYSE: BPI). The investigation focuses on whether certain executive officers and directors of Bridgepoint breached their fiduciary duties by causing the Company to, among other things, improperly compensate its admission personnel at Ashford University. Bridgepoint is the parent company of Ashford University, an academic institution.
In a filing with the Securities and Exchange Commission on October 15, 2012, Bridgepoint announced it had received a letter from the United States Department of Justice (“DOJ”), stating that the DOJ is investigating Bridgepoint over the compensation of its admissions staff. The investigation is a follow-up to a 2011 audit by the Education Department’s Inspector General that found that Ashford University may have violated a federal ban on incentive compensation for college recruiters.
The DOJ investigation comes three months after Ashford was denied initial accreditation by the Western Association of Schools and Colleges for not complying with certain standards, including spending more money on student recruitment than education. The accreditation denial was followed by increased scrutiny from Ashford’s current accrediting body, the Higher Learning Commission.
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