Investor Accuses Princeton Review Of Fraud

Law360, New York (July 29, 2011, 3:54 PM EDT) -- A Michigan retirement fund hit The Princeton Review Inc. with a class action Friday in Massachusetts claiming former CEO Michael Perik falsely touted strong earnings in 2009 as the test preparation company planned a $48 million stock sale.

The Washtenaw County Employees' Retirement System's suit claims Perik, who was hired in 2007 to put the Framingham, Mass.-based company back on a path to profit amid poor earnings, told investors in November 2009 that "the turnaround has worked."

Then, in April 2010, the company sold $48 million...
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