The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Grand Canyon Education, Inc. (NASDAQ: LOPE) who purchased shares between January 5, 2018 and January 27, 2020. The action, which was filed in the United States District Court for the District of Delaware, alleges that the Company violated federal securities laws.
In particular, the Grand Canyon lawsuit alleges that According to a filed complaint, statements made by Defendants were false and/or misleading because, following the Grand Canyon’s spin-off of its educational assets as Grand Canyon University (“GCU”): (i) GCU would not be a proper non-profit organization as it would remain under the control of Grand Canyon, and (ii) Grand Canyon would not be a third-party service provider to GCU but rather would continue to effectively operate the entity, and (iii) Grand Canyon employees served as executives of GCU and (iv) GCU functioned as an off-balance-sheet entity to which Grand Canyon would be able to funnel expenses and costs in exchange for a disproportionate amount of revenue, thereby inflating Grand Canyon’s financial results.
Shareholders have until July 13, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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