Princeton Review Brass Sugarcoated Earnings: Investors

Law360, New York (November 15, 2011, 3:59 PM EST) -- Shareholders of The Princeton Review Inc. filed a derivative action Monday alleging the test prep company's current and former officers and directors allowed the company to pump up its earnings, wiping out millions of dollars in market capitalization when the truth emerged.

In a suit filed in Massachusetts federal court, investors claim the Princeton Review's board failed to effectively monitor the conduct of ex-CEO Michael Perik, who told investors in November 2009 that turnaround efforts at the troubled company had worked, all the while overstating its...
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