K12 Inc. Executives Under Investigation for False and Misleading Statements
Schubert Jonckheer & Kolbe LLP has launched an investigation into whether certain officers and directors of K12 Inc. (NYSE:LRN) breached their fiduciary duties by causing the company to issue false and misleading statements. K12 provides online curriculum, software systems, and educational services to students in kindergarten through 12th grade.
On August 30, 2017, the United States District Court for the Northern District of California issued an order denying the motion to dismiss securities fraud class action claims against K12 and certain of its executives. The operative complaint in that action, filed on October 2, 2017, alleges that during the period October 10, 2013 through October 27, 2015, the defendants misrepresented key aspects of K12's business, thereby inflating the company's stock price. Specifically, defendants are alleged to have made false and misleading statements regarding the company's relationship with one of its largest school clients, the Agora Cyber Charter School. According to the complaint, defendants failed to adequately disclose that the Agora contract would not be renewed, resulting in a substantial stock price decline when the truth was finally revealed.
Schubert Jonckheer & Kolbe's investigation concerns when and how much certain of K12's officers and directors knew about these practices. Shareholders interested in seeking the recovery of damages on behalf of K12 and securing other remedial measures should contact the firm.
If you are a long term holder of K12 stock and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.