Wash. Post Hit With Fraud Action Over Kaplan Unit

Law360, New York (October 28, 2010, 7:23 PM EDT) -- The Washington Post Co. is facing a proposed securities class action claiming the company's higher education division, Kaplan Inc., failed to disclose the financial impact of a government crackdown on for-profit colleges that caused the company's stock price to plunge.

Plumbers Local 200 Pension Fund filed a complaint Thursday in the U.S. District Court for the District of Columbia, alleging the company, CEO Donald E. Graham and Chief Financial Officer Hal S. Jones violated the Securities Exchange Act of 1934.

The union claims Washington Post stock...
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