NYSE:ESI Investor Alert: Investigation of potential Wrongdoing at ITT Educational Services
The Shareholders Foundation announces that an investigation on behalf of investors, who purchased NYSE:ESI shares in 2010 or earlier and currently hold any of those shares, is ongoing concerning whether certain ITT Educational Services officers and directors possibly breached their fiduciary duties in connection with certain statements.
Carmel, IN based ITT Educational Services, Inc. is a provider of postsecondary degree programs in the United States.
Investors who are purchased shares of ITT Educational Services, Inc. (NYSE:ESI) in 2010 and currently hold any of those NYSE:ESI shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain ITT Educational Services, Inc. (NYSE:ESI officers and directors breached their fiduciary duties and caused damage to the company and its shareholders by failing to implement adequate internal controls and misstating the company's financial results.
ITT Educational Services, Inc. currently faces a lawsuit filed in the U.S. District Court for the Southern District of New York over alleged securities laws violations.
The plaintiff claims that the defendants issued between April 22, 2010 and February 25, 2013 materially false and misleading statements regarding ITT Educational Services' business and financial results in press releases, analyst conference calls and filings with the Securities and Exchange Commission (“SEC”), specifically with respect to the Company's compliance with relevant accounting standards when reporting its risk-sharing activities in loan programs.
The plaintiff says that as a result of defendants' statements, ITT Educational Services, Inc. (NYSE:ESI) stock traded at artificially inflated prices between April 22, 2010 and February 25, 2013, reaching a high of $112.69 per share on April 22, 2010.
Then on February 22, 2013, after the market closed, ITT Educational Services filed its annual report. ITT Educational Services disclosed that it was being investigated by SEC concerning the company’s involvement in some private student-loan agreement. ITT Educational Services said it received a subpoena from the SEC on February 8, 2013. The subpoena issued by the SEC requested documents related to a 2009 loan risk-sharing agreement and its PEAKS Private Student Loan Program.
Shares of ITT Educational Services, Inc. declined from over $75 in February 2012 to as low as slightly above $12 in April 2013.
On July 30, 2013, NYSE:ESI shares closed at $26.97 per share.
Those who are current long term stockholders of shares of ITT Educational Services, Inc. have certain options and should contact the Shareholders Foundation.
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