PRLog - July 26, 2010 - SAN DIEGO -- An investigation on behalf of current long term investors in Grand Canyon Education Inc (Public, NASDAQ:LOPE)
If you are a current long term investor in Grand Canyon Education Inc (Public, NASDAQ:LOPE)
Grand Canyon Education, Inc., located in Phoenix, Arizona, is a provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business, and healthcare. Grand Canyon Education, Inc announced that on August 14, 2008, the U. S. Department of Education, Office of Inspector General started an investigation and served an administrative subpoena on Grand Canyon Education requiring it to provide certain records and information related to performance reviews and salary adjustments for all of its enrollment counselors and managers from January 1, 2004 to August 2008. On September 11, 2008, Grand Canyon Education was served with a qui tam lawsuit that had been filed against Grand Canyon Education in August 2007 in the United States District Court for the District of Arizona by a then-current employee on behalf of the federal government. The qui tam lawsuit alleges, among other things, that Grand Canyon Education violated the False Claims Act by knowingly making false statements, and submitting false records or statements, from at least 2001 to the present, to get false or fraudulent claims paid or approved, and asserts that Grand Canyon Education improperly compensated certain of its enrollment counselors in violation of the Title IV law governing compensation of such employees, and as a result, improperly received Title IV program funds. Grand Canyon Education announced a tentative settlement in the amount of $5.2million of the qui tam case, which was objected thereto in a June 10, 2010 hearing. On July 6, 2010, Grand Canyon Education was notified by U. S. Department of Education of its intent to conduct a program review at Grand Canyon University of the University’s administration of the Title IV programs in which it participates. As part of the oversight of U.S. Department of Education of the educational institutions participating in the Title IV programs under the Higher Education Act of 1965, as amended, the Department of Education periodically conducts program reviews at selected schools that receive Title IV funds for the purpose of evaluating the school’s compliance with the Title IV requirements, identifying any liabilities to the Department of Education for errors in compliance, and improving future institutional capabilities.
Grand Canyon Education Inc increased its Total Revenue over the last three years. Grand Canyon Education Inc reported in 2007 Total Revenue of $99.33million, in 2008 $161.31million, and in 2009 $261.90million. Its Net Income increased over the same period from $1.53million in 2007, to $6.68million in 2008, and $27.30million in 2009. Shares of Grand Canyon Education Inc (LOPE) traded recently at $23.12 per share, down from its 52weekHigh of 28.46 per share.
Those who are current long term investors in Grand Canyon Education Inc (Public, NASDAQ:LOPE)
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