Robbins Umeda LLP Announces Investigation of Education Management Corporation
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Education Management Corporation. (“Education Management” or the “Company”) (NASDAQ: EDMC). Education Management provides post-secondary education in North America. The Company offers campus-based and online instructions to enable students to earn undergraduate and graduate degrees in various disciplines through the Art Institutes, Argosy University, the Brown Mackie College, and South University. Education Management was founded in 1962 and is headquartered in Pittsburgh, Pennsylvania.
Robbins Umeda LLP’s investigation concerns whether the Company’s directors and officers damaged Education Management by causing or allowing it to engage in fraudulent, deceptive, or otherwise questionable marketing practices.
On August 4, 2010, the Government Accountability Office (“GAO”) released report GAO-10-948T, titled For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices. According to this GAO study, the college personnel at schools owned by Education Management may have encouraged applicants to falsify their financial aid forms to qualify for federal aid and pressured applicants to sign a contract for enrollment prior to allowing them to speak to a financial advisor. During a U.S. Senate Health, Education, Labor, and Pensions Committee hearing on for-profit schools, GAO representative George Kutz identified Argosy University as one of the schools subject to the investigation. As an apparent result of this report, Education Management’s stock dropped to a fifty-two week low.
If you are a shareholder of Education Management, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at email@example.com.