K12, Inc.

Robbins Umeda LLP Announces an Investigation of K12, Inc.

Robbins Umeda is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at K12, Inc. (NYSE: LRN).  Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly.  You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.

Robbins Umeda LLP’s investigation focuses on whether members of the Board of Directors at K12 breached their fiduciary duties to shareholders, maintained woefully inadequate controls, and wasted corporate assets to the detriment of the company and investors.  In particular, the firm is investigating allegations that certain officers and directors at K12 instituted deceptive recruiting and flawed academic assessment practices in order to inflate the company’s student enrollment and revenue figures.  On December 12, 2011, the New York Times published an article detailing: (1) K12′s high-pressure sales strategies to enroll students; (2) administrative pressure to pass enrolled students regardless of academic performance; and (3) the overall failure of K12 students to maintain grade-level performance in math and reading.

On this news, the price of K12 stock declined from a closing price of $28.79 per share on December 12, 2011 to a closing price of $18.90 per share on December 16, 2011, a decline of $9.89 per share, or 34.4%.  Additionally, since these facts have emerged, K12 has increasingly become the focus of costly public and legal scrutiny, while allegations of deceptive academic and recruiting practices have undermined the company’s reputation and future business prospects.

Robbins Umeda LLP highlights that K12 shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company.  Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.

Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

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