K12 receives securities class action lawsuit

A law firm recently filed a securities class action claim against an education company after shareholders brought forth claims of securities law violations.

Bernstein Litowitz Berger and Grossman, LLP, filed the litigation against K12, Inc., in the U.S. District Court for the Eastern District of Virginia. This was done on behalf of the Oklahoma Firefighters Pension and Retirement System and included all investors who acquired K12 stock during the class period between March 11, 2013, and Oct. 9, 2013.

The lawsuit alleges that K12 executives violated the Securities Exchange Act of 1934 by releasing a number of statements that were misleading to shareholders. Specifically, these either exaggerated or omitted information about revenue growth and student enrollment.

K12 noted on Oct. 8, 2013 that it actually had a limited growth prospect, which was different from what it said during the aforementioned class period. It also filed a Form 8-K with the Securities and Exchange Commission showing that its revenue guidance for the 2014 fiscal year was in the range between $905 million and $925 million. This was noted to be $986.8 million in a previous announcement.

When the information was announced, the company saw its stock fall approximately 38 percent to $17.60 per share on Oct. 9, 2013.

For those shareholders who want to become lead plaintiff in the case, it is necessary that they file the proper paperwork with the court within 60 days of Jan. 31, 2014. It is possible for any member to apply for the position, though they need to be approved by the court. However, those who are not lead plaintiff can still collect in the event of a payout.

It is also a possibility for shareholders to speak with the law firm in order to learn more about the case. The best person to speak with is Avi Josefson, and he can be reached by telephone or email.

Separate lawsuit filed
Another law office noted that it also filed a class action claim against K12's executives.

Law firm Bronstein, Gewirtz and Grossman filed the lawsuit in the same court. As with the other law firm, it encouraged shareholders to make contact in order to learn more about the case. Both Peretz Bronstein and Eitan Kimelman can be reached to do this, and they are available via email and telephone. Those who choose to email the firm also should leave their telephone number and mailing address.