LOPE.US
id: 1173
Grand Canyon Education (LOPE) $25.5M Shareholder Settlement
Late claims are being considered for compensation, subject to approval.
D. Delaware
Court1:20-cv-00639
Case number01/05/2018
Class period Start01/27/2020
Class period End09/19/2024
Claim deadlineGrand Canyon Education (LOPE) agreed to settle $25.5M with shareholders to end claims over Grand Canyon University spin-off.
Outline
Back in 2019, Grand Canyon Education was accused of secretly managing Grand Canyon University while falsely claiming that GCU was a separate, independent non-profit organisation. Following the disclosure, $LOPE significantly fell, and GCE faced a lawsuit from investors.
Timeline
- September 9, 2019: Citron Research published "GCE is the Educational Enron", accusing GCE of financial manipulation.
- November 6, 2019: GCE received a letter from the DOE denying GCU’s non-profit status.
- November 7, 2019: After this became public, $LOPE fell 4%.
- January 28, 2020: Citron Research published another report accusing GCE of financial issues. GCE’s stock dropped 8%.
- May 12, 2020: GCE faced a lawsuit from investors.
Background
In July 2018, Grand Canyon Education announced that Grand Canyon University would become a separate non-profit organisation and that GCE would provide services to it.
However, in September 2019, Citron Research published a report titled "GCE is the Educational Enron," accusing GCE of financial manipulation.
The report claimed that Grand Canyon was using a "captive non-reporting subsidiary" to “dump expenses and liabilities while receiving a disproportionate amount of revenue at inflated margins in order to artificially inflate the stock price”.
On November 6, 2019, GCE received a letter from the DOE denying GCU’s application for non-profit status. This denial indicated that GCU was not operating independently as a non-profit.
On November 7, 2019, after the DOE's letter became public, $LOPE declined by 4%.
In January 2020, Citron Research released another report stating that Grand Canyon University was still controlled by Grand Canyon Education. Following this report, $LOPE dropped 8%.
After these reports, in May 2020, the City of Hialeah Employees' Retirement System filed a lawsuit against GCE, alleging that the company had misled investors about GCU's non-profit status and its financial practices.
What can investors expect now?
Grand Canyon Education (LOPE) agreed to settle $25.5M with shareholders to end claims over Grand Canyon University spin-off.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.69
Plaintiffs
Fire and Police Pension Association of Colorado, Oakland County Employees’ Retirement System, Oakland County Voluntary Employees’ Beneficiary Association Trust
Attorneys
Bernstein Litowitz Berger & Grossmann LLP, Barrack, Rodos & Bacine
Defendants
Brian E. Mueller, Daniel E. Bachus
Administrator
JND Legal Administration
Exclusion deadline
08/01/2024
Objection deadline
08/01/2024
Hearing deadline
08/22/2024
Trades matching type
FIFO
+$25,500,000
Cash Settlement AmountFrequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How much will my payment be?
How long does the payout process take?
What is 11thestate?