US-Funded Education Co., Banks Duck Shareholder IPO Suit

Law360, New York (September 29, 2011, 5:03 PM EDT) -- A Pennsylvania federal judge on Thursday threw out a putative class action accusing an Internet college degree provider and banks that own it of engaging in fraudulent recruitment practices and overcharging the government before its 2009 $414 million initial public offering.

In adopting a magistrate judge's Aug. 30 report and recommendation, U.S. District Judge Nora Fischer dismissed the suit against Education Management Corp. and its numerous investment bank owners including Goldman Sachs & Co. She said in her order that she found the evidence plaintiffs had...
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