|[February 14, 2014]
Lieff Cabraser Announces Class Action Litigation Against K12, Inc. - LRN
SAN FRANCISCO --(Business Wire)--
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action litigation has been brought on behalf of those who purchased or
otherwise acquired the common stock of K12, Inc. ("K12" or the
"Company") (NYSE:LRN) between March 11, 2013 and October 9, 2013,
inclusive (the "Class Period").
If you purchased or acquired K12 common stock during the Class Period,
you may move the Court for appointment as lead plaintiff by no later
than April 1, 2014. A lead plaintiff is a representative party who acts
on behalf of other class members in directing the litigation. Your share
of any recovery in the action will not be affected by your decision of
whether to seek appointment as lead plaintiff. You may retain Lieff
Cabraser, or other attorneys, as your counsel in the action.
investors who wish to learn more about the action and how to seek
appointment as lead plaintiff should click here or contact Sharon M.
Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the K12 Securities Class Litigation
K12, based in Herndon, Virginia, is a technology-based education company
engaged in the operation and expansion of virtual schools for students
in kindergarten through 12th grade.
The action alleges that defendants violated sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 by issuing materially misleading
statements and omitting material information about the Company regarding
its student enrollment and revenue growth prospects for fiscal 2014, as
well as its compliance with state regulations governing enrollment.
During the Class Period, K12 publicly endorsed analysts' fiscal 2014
financial guidance for the Company and assured investors that K12 was
"on track to have one of the best business development years" in its
history, which was supposed to "drive even higher growth for fiscal
2014" than in fiscal 2013. Defendants also allegedly falsely touted
K12's "serious" attention to regulatory compliance.
On October 8, 2013, K12 announced in a Form 8-K filed with the SEC (News - Alert) that
its actual fiscal 2014 revenue guidance was $905 million to $925
million, far less than the $986.8 million figure they had endorsed only
weeks earlier, because 2014 enrollments were below the levels that
investors had been told to expect due to operational and performance
deficiencies at K12's enrollment centers. Additionally, defendants
stated that the Company had failed to "appropriately" consider increased
compliance requirements in certain states in the fiscal 2014 enrollment
season. On this news, the price of K12 stock dropped $10.99, or 38.4%,
from a closing price of $28.59 on October 8, 2013, to close at $17.60 on
October 9, 2013, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco,
New York, and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs' law firms in the nation. In compiling the
list, the National Law Journal examined recent verdicts and
settlements in addition to overall track records. Lieff Cabraser is one
of only two plaintiffs' law firms in the United States to receive this
honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm's representation
of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
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