Investors Win Class Cert. in Ambassadors Fraud Suit

Law360, New York (March 18, 2011, 4:49 PM EDT) -- A federal judge in Washington state granted class certification Thursday to investors alleging student travel company Ambassadors Group Inc. concealed its business setbacks and artificially inflated its stock price.

Judge Justin Quackenbush of the U.S. District Court for the Eastern District of Washington established a class of plaintiffs alleging Ambassadors fraudulently touted its sanguine prospects in 2007 despite knowing that enrollment numbers for the following year would be disappointing.

The court certified a class of investors who purchased Ambassadors Group publicly traded securities between July 24,...
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