Robbins Arroyo LLP: K12 Inc. (LRN) Misled Shareholders According to a Recently Amended Class Action
Robbins Arroyo LLP announces that shareholders amended their class action complaint filed against K12 Inc. (NYSE: LRN). The complaint is brought on behalf of all purchasers of K12 securities between October 10, 2013 and October 27, 2015, for alleged violations of the Securities Exchange Act of 1934 by K12’s officers and directors. K12, a technology-based education company, offers educational services to facilitate individualized learning for students in kindergarten through 12th grade in the United States and internationally.
K12 Accused of Hiding Major Contract Loss
According to the complaint, K12’s largest revenue providing school, the Agora Cyber Charter School, decided against renewing its Managed Public School Contract with K12, which was scheduled to terminate on June 30, 2015. Although K12 acknowledged in its public filings that a change in its contract with Agora could adversely affect the company’s business, financial condition, and results of operation, K12 concealed from investors Agora board’s decision not to renew the contract. After the loss of the contract, on October 27, 2015, K12 reported disappointing financial results for the quarter ended September 30, 2015 compared to the first quarter of fiscal year 2015, including revenue of $221.2 million compared to $236.7 million and an operating loss of $20.5 million compared to $13.2 million. When news of the Agora decision became public, K12’s stock fell 60% from its class period high of $25.98 per share on June 23, 2014, to close at $10.25 per share on October 27, 2015.
K12 Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003 or you can complete the form below and we will contact you directly.