Investors Throw Book At Education Co. K12 Over Stock Dive

Law360, New York (January 31, 2012, 7:35 PM EST) -- Online education provider K12 Inc. was hit with a shareholder class action Monday in Virginia federal court alleging it deceived investors by touting revenue growth based on improper enrollment and academic assessments in its schools, after a New York Times article raised questions about its practices.

The alleged improprieties duped investors into believing the Virginia-based K12, which makes much of its money through per-student funding contracts with state governments, was doing better than it was, resulting in inflated stock prices that reached a high of $39.74...
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