NEW YORK, July 13, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that a securities class action has been commenced on behalf of persons or entities who purchased or otherwise acquired the securities of Corinthian Colleges, Inc. ("Corinthian" or the "Company") (Nasdaq:COCO) between August 27, 2003 and June 23, 2004, inclusive, (the "Class Period").
The case is pending in the United States District Court for the Central District of California against defendants Corinthian and certain of its officers. A copy of the complaint is available from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
The Complaint alleges that defendants made false and misleading statements concerning its business and financial performance in violation of the Securities Exchange Act of 1934. Such representations were materially false and misleading because, unbeknownst to investors, they failed to disclose and/or misrepresented that (1) the Company manipulated financial aid documents to boost loan amounts available to students, thereby fraudulently receiving additional funds from the federal government; (2) the Company used the fraudulently obtained funds to boost its revenues and stock price; (3) the Company lacked adequate internal controls; and (4) as a result of the illegal practices, the Company's earnings and net income were materially inflated and in violation of Generally Accepted Accounting Principles ("GAAP").
On June 24, 2004, Corinthian announced that a division of the United States Department of Education ("USDE") had uncovered violations in obtaining federal loans at Corinthian's Bryman College campus in San Jose, California. Consequently, the USDE revoked the school's ability to receive advance payments on its student loans. News of this shocked the market. Shares of Corinthian fell $2.55 or 10.18 percent, on June 24, 2004, to close at $22.51.
If you purchased Corinthian securities during the Class Period, you may request that the Court appoint you as lead plaintiff by September 7, 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.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Virgilio Soler, Jr. Wechsler Harwood Shareholder Relations Department: vsoler@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.