9th Circ. Reinstates Securities Verdict Against Apollo

Law360, New York (June 23, 2010, 7:56 PM EDT) -- A federal appeals court reinstated Wednesday what could be a $280 million jury verdict determining that Apollo Group Inc., which runs the University of Phoenix, is liable for securities fraud for failing to disclose the extent of a negative government report related to the university.

The U.S. Court of Appeals for the Ninth Circuit said it was reasonable for the jury in the class action to conclude that analyst reports which detailed the government's findings led to a significant decline in Apollo's stock price.

The damages...
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