Hagens Berman Investigates Apollo Group, Inc., Following Disclosure that the University of Phoenix May Be Put “On Notice” Status
SEATTLE--(BUSINESS WIRE)-- Hagens Berman Sobol Shapiro LLP, a securities law firm, today announced that it is investigating Apollo Group, Inc. (Nasdaq: APOL ) (“Apollo”) following a significant drop in the company’s stock price and concerns about the University of Phoenix’s accreditation.
Investors who purchased or otherwise acquired Apollo stock since July 12, 2011, and who have suffered significant financial losses may contact Hagens Berman attorney Reed R. Kathrein, who is leading the firm’s investigation, for a consultation. Investors can contact Mr. Kathrein by calling (510) 725-3000 or by emailing APOL@hbsslaw.com.
Additionally, witnesses and other persons with knowledge that may help the investigation are encouraged to contact Mr. Kathrein. The SEC has finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Apollo owns the University of Phoenix education system, a for-profit network offering online and traditional courses throughout the United States. Apollo receives 91 percent of its total consolidated net revenue from the University of Phoenix.
On Jan. 9, 2013, the company disclosed that The Higher Learning Commission (“HLC”), which accredits the University of Phoenix, may put it “on notice,” and formally sanction the school. The reasons for the potential action by The Higher Learning Commission have not yet been specified by Apollo.
In July 2011, the HLC informed Apollo that there remained significant questions and areas that the University of Phoenix should work on improving and that these areas of concern would be reviewed at the next previously scheduled comprehensive evaluation visit in March 2012. On Oct. 19, 2011, Apollo stated that it was making preparations for the upcoming HLC visit and was “well-prepared” for the visit. The HLC began its comprehensive reaffirmation evaluation of the University of Phoenix in March 2012.
Hagens Berman attorneys are investigating what Apollo and certain of its executives knew about the Higher Learning Commission’s concerns, what it did to respond to these concerns, and what Apollo knew about the improving or deteriorating conditions at the University of Phoenix underlying these concerns.
Additional information is available at http://hb-securities.com/investigations/Apollo.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm’s securities law blog is at www.meaningfuldisclosure.com.
Firmani + Associates
Mark Firmani, 206-443-9357
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