GAO Report Sparks Education Management Suit

Law360, New York (October 11, 2010, 12:25 PM EDT) -- Education Management Corp. is facing a putative class action from investors who say the for-profit higher education provider hid evidence that it was overcharging the government and engaging in other fraudulent practices during the run-up to its $414 million initial public offering in October 2009.

According to the complaint, filed in the U.S. District Court for the District of Massachusetts, those allegations came to light in an August report by the U.S. Government Accountability Office that found that for-profit colleges used deceptive recruiting practices to lure...
To view the full article, register now.