K12’s $6.8M Deal Closes Book On Investor Class Action
By Kat Greene
Law360, Los Angeles (July 26, 2013, 10:29 PM ET) -- A Virginia federal judge gave final approval to online educator K12 Inc.’s $6.8 million settlement with stockholders Thursday, ending a row over whether the company misled investors about its enrollment and student performance, according to a filing in Virginia federal court.
Investors led by the Arkansas Teacher Retirement System said K12 lied about students’ performance on tests and student enrollment, leading investors to believe the company was doing very well.
But after a New York Times expose in late 2011, the stock price plunged quickly, decimating...