NEW YORK, Aug. 5, 2004 Business news, legal news, law firm announcments at LAWFUEL– Wolf Haldenstein Adler Freeman & Herz LLP
filed a class action lawsuit in the United States District Court for the
Central District of California, on behalf of all persons who purchased the
common stock of Corinthian Colleges, Inc. (“Corinthian” or the “Company”)
(Nasdaq: COCO) between August 27, 2003 and June 23, 2004, inclusive, (the
“Class Period”) against defendants Corinthian and certain officers of the
Company.
The case name and index number are Meneses v. Corinthian Colleges, Inc.,
et al and SACV 04-923 DOC (MLGx). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the Wolf Haldenstein
Adler Freeman & Herz LLP website at
http://www.whafh.com/cases/corinthian2.htm.
The complaint alleges that defendants violated the federal securities laws
by issuing materially false and misleading statements throughout the Class
Period that had the effect of artificially inflating the market price of the
Company’s securities.
The complaint further alleges that statements made by the Company were
each materially false and misleading, and were known by defendants to be false
or were recklessly disregarded as such thereby, for the reasons set forth in
following reasons, among others: (i) the Company has systematically assisted
students in falsifying their financial aid applications for the purpose of
increasing student retention rates and to increase reported revenues and
earnings; (ii) a material portion of the Company’s reported revenues was
derived through fraudulent business practices, such as federal grants and
financial aid payments granted on the basis of representations that were
falsified with the assistance of the Company; (iii) the Company’s purported
risk with warnings failed to disclose that the Company had falsified student
financial and applications and defrauded the federal, state and private
agencies which regulate and/or accredit Corinthian’s schools, thereby placing
its accreditation at serious risk and jeopardizing the ability of its students
to qualify for financial aid, which would have a devastating impact on
Corinthian’s business; (iv) the Company’s results were not prepared and
reported in accordance with Generally Accepted Accounting Principles and did
not fairly present its actual financial results or condition; and (v) the
Company lacked adequate internal controls.
If you purchased Corinthian common stock during the Class Period, you may
request that the Court appoint you as lead plaintiff by September 6 , 2004. A
lead plaintiff is a representative party that acts on behalf of other class
members in directing the litigation. In order to be appointed lead plaintiff,
the Court must determine that the class member’s claim is typical of the
claims of other class members, and that the class member will adequately
represent the class. Under certain circumstances, one or more class members
may together serve as “lead plaintiff.” Your ability to share in any recovery
is not, however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice,
to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities
class actions and derivative litigation in state and federal trial and
appellate courts across the country. The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City, San Diego,
and West Palm Beach. The reputation and expertise of this firm in shareholder
and other class litigation has been repeatedly recognized by the courts, which
have appointed it to major positions in complex securities multi-district and
consolidated litigation.
If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New
York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Gustavo
Bruckner, Esq., or Derek Behnke), via e-mail at classmember@whafh.com or visit
our website at http://www.whafh.com. All e-mail correspondence should make
reference to Corinthian.
Wolf Haldenstein Adler Freeman & Herz LLP
Web Site: http://www.whafh.com
