Grand Canyon Education (LOPE) FTC Suit for Deceptive Conduct Case

• On October 31, 2023, the U.S. DoE announced a fine against Grand Canyon’s (LOPE) principal subsidiary GCU for lying to prospective and current students about the costs of doctoral programs. On December 27, 2023, the FTC filed suit against Grand Canyon and GCU for similar conduct.

• On it, $LOPE fell 6.36%, losing $270M+ of shareholder value.

• Investors may have grounds to suspect Grand Canyon of deceptive conduct, which led to their losses.

On October 31, 2023, the U.S. Department of Education announced a record fine of $37.7 million against Grand Canyon’s principal subsidiary Grand Canyon University (“GCU”) for years of lying to prospective and current students about the costs of GCU’s doctoral programs.

On December 27, 2023, the Federal Trade Commission filed suit against Grand Canyon and GCU for similar conduct, as well as other deceptive conduct, including GCU’s supposed nonprofit status, and deceptive telemarketing practices.

On this news, $LOPE fell 6.36% and lost over $270 million of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect Grand Canyon of deceptive conduct, which led to their losses.

The case is already under investigation by at least one of the reputable law firms.