Apollo Ducks Derivative Suit Over U. Of Phoenix Recruiting

Law360, New York (September 12, 2012, 1:37 PM EDT) -- An Arizona federal judge on Tuesday tossed a derivative suit alleging Apollo Group Inc. and its executives mismanaged the for-profit University of Phoenix by hiding from investors questionable recruiting practices that caused the company's stock price to plummet.

In a one-sentence order entering judgment in the case, U.S. District Judge James A. Teilborg dismissed allegations from Apollo shareholder Darlene Smith and other investors that the company, which operates the online university, trumpeted its ability to attract new students through "enhanced and expanded educational services," when, in...
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