Corinthian Colleges, Inc. under long term investor investigation/class action suit

PR-USA.NET is reporting the following:

"According to the complaint filed in the United States District Court for the Central District of California the plaintiff alleges on behalf of all persons who purchased or acquired Corinthian Colleges, Inc. (NASDAQ:COCO) securities during the period from October 30, 2007 through including August 19, 2010, that Santa Ana, California based Corinthian Colleges, Inc and certain of its officers violated the Securities Exchange Act of 1934 by issuing between October 30, 2007 through including August 19, 2010, false and/or misleading statements, as well as by failing to disclose material adverse facts about its business, operations, and prospects.

On August 4, 2010, the Senate Health, Education, Labor, and Pensions Committee conducted a hearing on for-profit education firms, where Government Accountability Office representative, George Kutz, presented the findings of report GAO-10-948T, "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices." The report detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff. According to this GAO study, the college personnel at schools 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."

Click here to read the whole article and click here for the class action suit article