Virtual Educator K12 Can't Close Book On Investor Suit

Law360, New York (September 18, 2012, 6:38 PM EDT) -- Online education provider K12 Inc. lost a bid Friday to dismiss a putative shareholder class action in Virginia federal court alleging it duped investors by touting revenue growth based on improper enrollment and academic assessments in its virtual schools.

U.S. District Judge Claude M. Hilton denied K12’s July 20 motion to toss the suit, which claims the Herndon-based company and two top executives — CEO Ronald J. Packard and Chief Financial Officer Harry T. Hawks — misled shareholders about financial earnings, artificially inflating K12’s stock price....
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