Apollo Group Inc. – the parent company of several for-profit educational institutions in the US such as the University of Phoenix – has revealed that it is currently facing a class action lawsuit over alleged ‘misleading statements’ made about the business by company executives.
The complainants, who filed the suit in an Arizona federal court, are alleging that during the period December 7th, 2009 and August 3rd, 2010, Apollo Group executives made “materially false and misleading statements” about company operations. It is also alleged that these misleading statements caused the artificial inflation of Apollo common stock trading prices during the aforementioned period.
Amongst others, the executive chairman, chief financial officer and a number of co-chief executive officers at Apollo Group Inc. have been named as defendants in the lawsuit. The plaintiffs in the suit are pursuing Apollo for compensatory damages, but it is not yet known the amount they are seeking.
Apollo Group was the first to reveal the lawsuit filed against it in a regulatory filing. The corporation, no doubt with the backing of an airtight professional indemnity insurance policy, added that it plans to defend the lawsuit “vigorously”.
