ITT Education Services investigation underway

A law office recently began conducting an investigation of an educational institution after it may have violated securities laws. There is a possibility that this may turn into a securities class action claim in the future.

Pomerantz, LLP, will work to determine whether or not ITT Educational Services, Inc., had its board of directors or other officers violate Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. This was due to the company receiving a lawsuit from the Consumer Financial Protection Bureau, after it learned of issues involving ITT Educational Service's credit practices.

The information surfaced in a Barron's report on Feb. 26, 2014. It explained that the company created a system to help students enroll in classes. This would work as a loan that did not have any interest, but it required all funds to be paid before the end of the school year. This was not possible for many students, and the school may have been aware of that. When the information reached shareholders, shares of ITT Educational Services dropped to $29.10 on Feb. 27, 2014. This was $3.10 or 10.19 percent lower than the previous level.

It is possible for shareholders to speak with the law firm in order to learn more about the case. Robert Willoughby is the best contact, and he can be reached by telephone or email.

Second investigation begins
Another law office explained that it will investigate the claims against ITT Educational Services, as the company may have had multiple violations. This also may become a class action lawsuit, depending on the outcome of the investigation.

Law firm Bronstein, Gewirtz and Grossman, LLC, noted it is examining the issues at hand. This group had another stock decline measurement, as it explained that on Feb. 26, 2014, the company saw shares drop to $30.81 each, which was $1.59 or 4.91 percent lower than the previous level.

For any shareholders who want to learn more about the case, as well as how it may affect them, it is possible to contact the law office. Both Eitan Kimelman and Peretz Bronstein are available to be reached by telephone or email. It is important for any shareholders to attach their mailing address and telephone number if they are contacting by email.