NEW YORK, Dec. 9 – LAWFUEL- The Law News Network-…

NEW YORK, Dec. 9 – LAWFUEL- The Law News Network– Wolf Popper LLP has filed a
securities fraud lawsuit against EVCI Career Colleges Holding Corp. (“EVCI”)
(Nasdaq: EVCI) and certain of its officers and directors, on behalf of all
persons who purchased EVCI securities on the open market during the period
November 14, 2003 through October 19, 2005. The action was filed in the
United States District Court, Southern District of New York. The complaint
can be obtained from the Court or by contacting Wolf Popper.
The complaint alleges that during the Class Period, EVCI, through its
wholly-owned subsidiary, Interboro Institute, Inc. (“Interboro”), entered into
an aggressive campaign to increase student enrollment. Undisclosed to
investors however, was the fact that Interboro did not maintain adequate
libraries, equipment and teaching staff to support these additional students,
in violation of the New York State Education Department’s (“NYSED”)
educational minimum standard requirements. As a result, defendants misled
investors concerning EVCI’s earning and enrollment growth and obtained
millions of dollars in proceeds from the sales of EVCI’s inflated stock price,
when they knew or recklessly disregarded that the Company would have to
curtail its growth and spend millions of dollars to increase its resources and
teaching staff in order to meet the minimum standard requirements.
On October 19, 2005, EVCI stunned the market when it revealed its true
financial condition and prospects, informing investors that the Company
received a draft report of a compliance review undertaken by the NYSED which
included assertions of irregularities in its admissions practices and a
proposed determination to deny extension center status for Interboro’s college
site, located in Yonkers, New York. The press release also revealed that the
NYSED recommended that EVCI increase the number and percent of full-time
faculty, improve its libraries, facilities and equipment resources, and
improve the quality of student learning. On December 6, 2005, the Company
further disclosed that the NYSED’s final determination was to deny extension
center status for its’ Yonkers location. In addition, the Company announced
that the NYSED required EVCI to downsize its student enrollment at all of its
college site locations in New York City. In immediate response to this news,
EVCI’s share price continued to downward spiral, falling to a low of $1.81 on
December 6, 2005.
Wolf Popper LLP has extensive experience representing shareholders in
class actions and has successfully recovered billions of dollars for defrauded
shareholders.
Class members who desire to be appointed a lead plaintiff in this action
must file a motion with the Court no later than February 6, 2006. Class
members who are interested in serving as a lead plaintiff in this action, or
other persons who have questions or information regarding the prosecution of
this action, are urged to call or write:

Emily DeMuro, Investor Relations ([email protected]) or
James Kelly-Kowlowitz, Esq. ([email protected]) * Wolf Popper LLP *
845 Third Avenue * New York * NY * 10022 Tel.: 212.759.4600 * Toll Free:
877.370.7703 * Fax: 212.486.2093 * Toll Free Fax: 877.370.7704
Email: [email protected]

Contact: Wolf Popper LLP
Emily DeMuro, Investor Relations
212.451.9610

Web Site: http://www.wolfpopper.com

List your legal jobs on the LawFuel Network
Scroll to Top