STEVENSON, Md., Sept. 22, 2014 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Pennsylvania on behalf of purchasers of Education Management Corporation ("EDMC" or the "Company") (Nasdaq: EDMC ) securities between August 8, 2012 and September 16, 2014, inclusive (the "Class Period") and informs investors who wish to become proactively involved in the litigation that they have until November 18, 2014 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in Education Management Corporation common securities purchased on or after August 8, 2012 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html . You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period. Brower Piven also encourages anyone with information regarding the Company's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that EDMC was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals, that EDMC was overstating goodwill, that EDMC manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011, and that EDMC's predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011. According to the complaint, following the Company's June 20, 2013 press release announcing the termination of John M. Mazzoni, the President of The Art Institutes, the November 1, 2013 announcement of the termination of its Chairman, Todd S. Nelson, the January 24, 2014 announcement that the Company had received inquiries from twelve states regarding the Company's business practices, and the Company's September 16, 2014 notification of the SEC that it would delay the filing of its Annual Report on Form 10-K for the period ended June 30, 2014, the value of EDMC shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616
