March 2, 2015
Bernstein Liebhard LLP today announced that it is investigating possible claims against Bridgepoint Education, Inc. (“Bridgepoint” or the “Company”) (NYSE: BPI). The investigation concerns whether Bridgepoint and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Bridgepoint is a for-profit provider of postsecondary education services. The Company’s institutions deliver programs primarily online, as well as at traditional campuses.
On May 12, 2014, Bridgepoint revealed that it was unable to timely file its Quarterly Report for the 2014 fiscal first quarter because the Securities and Exchange Commission (“SEC”) had informed the Company that a reassessment of its revenue recognition policy was necessary. According to the Company, the SEC was requiring Bridgepoint to reassess whether collectability was reasonably assured on a student-by-student basis when recognizing revenue after a student’s initial enrollment upon certain changes in circumstances, such as when a student loses financial aid eligibility.
Following this news, shares of Bridgepoint declined nearly 9%, to close on May 12, 2014, at $14.51 per share, on unusually heavy volume.
On May 30, 2014, Bridgepoint announced that its financial statements filed with the SEC for the years ended December 31, 2011 and December 31, 2012, as well as the financial statements issued for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, should no longer be relied upon. According to the Company, these financial statements contained errors related to revenue recognition that resulted in material misstatements of revenue, bad debt expense and accounts receivable.
On this news, Bridgepoint declined $0.17 per share, over 1%, to close on June 2, 2014, at $12.82 per share, on unusually heavy volume.
If you lost money in Bridgepoint, or are interested in discussing your rights as a Bridgepoint shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.