Kaskela Law LLC is investigating Grand Canyon Education, Inc. (“Grand Canyon” or the “Company”) (NASDAQ: LOPE) on behalf of the company’s stockholders. The investigation seeks to determine whether the members of Grand Canyon’s board of directors breached their fiduciary duties to the Company and its stockholders.
Recently a securities fraud complaint was filed against Grand Canyon and certain of the company’s executive officers on behalf of investors who purchased shares of Grand Canyon’s stock between January 5, 2018 and January 27, 2020. According to the complaint, during that time period the defendants issued a series of materially false and misleading statements to investors concerning Grand Canyon’s conversion of the for-profit university it owned and operated (GCU) into a supposedly independent “non-profit” university (“New GCU”). Further, the complaint alleges that “New GCU functioned as an improper off-balance-sheet entity in which Grand Canyon was able to hide expenses and costs in exchange for a disproportionate amount of revenue, thereby inflating Grand Canyon’s financial results.”
On November 6, 2019, Grand Canyon announced that it had received a letter from the U.S. Department of Education (“DOE”) denying its application for designation of New GCU as a non-profit. Following this news, shares of the Company’s common stock declined approximately 8% in value.
Subsequently, on January 28, 2020, Citron Research (“Citron”) published a report expanding on the DOE’s findings, based on hundreds of pages of supporting documentation from Grand Canyon that Citron obtained through a FOIA request. Following this additional news, shares of the Company’s common stock declined approximately 8% in value, to close at $84.07 per share on January 28, 2020.
Current Grand Canyon stockholders who purchased or acquired shares of the Company’s stock prior to January 5, 2018 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this investigation and their legal rights and options with respect to this matter.