BERKELEY, Calif., Feb. 29, 2012 /PRNewswire/ -- Hagens Berman is continuing its investigation of online education company K12, Inc. ("K12") (NYSE: LRN), and wishes to remind investors that the deadline to file for lead plaintiff in a securities class-action lawsuit is April 2, 2012.
Investors who purchased or otherwise acquired shares of K12, Inc. common stock between Sept. 9, 2009, and Dec. 16, 2011 (the "class period"), and have significant losses are encouraged to contact Hagens Berman Partner Reed R. Kathrein at (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also email Mr. Kathrein at LRN@hbsslaw.com or can contact the firm online by visiting www.hbsslaw.com/LRN.
A class-action lawsuit has been filed on behalf of investors who purchased shares of K12 stock during the class period. The suit alleges that K12, as well as certain of its officers, issued false statements regarding the true financial condition and outlook of the company. Specifically, the complaint alleges that the company deliberately failed to disclose that it regularly passed students regardless of their performance, and issued false statements about the performance of its students compared to other traditional schools.
K12 reported strong financial results in the third quarter of 2011, including a nearly 35 percent increase in revenue compared to the third quarter of 2010. Yet, on Dec. 12, 2011, a New York Times article claimed that K12 Inc. students were failing to meet grade-level performance. It also alleged that student-to-teacher ratios were very high, in some cases as high as 270 to one.
Following publication of the New York Times article, the price of K12 stock dropped nearly 35 percent, closing under $19.00 on Dec. 16, 2011.
The stock continues to trade below its class period high, closing just over $22.00 on Feb. 29, 2012.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro LLP