Apollo Group, Inc. disclosed that it has been contacted by the Division of Enforcement of the Securities and Exchange Commission (“SEC”) requesting documents and information relating to certain stock sales by company insiders and the filing with the SEC on February 28, 2012 in which Apollo Group announced that new degreed enrollment growth at its University of Phoenix was less than previously expected.
For-profit colleges, including the University of Phoenix, have faced scrutiny from the U.S. government over the last two years and at least two lawsuits by investors in NASDAQ: APOL shares against certain of officers and directors of Apollo Group over alleged breaches of fiduciary duties are currently pending. According to one complaint the plaintiff alleges that certain defendants made improper statements and engaged in improper business practices that caused Apollo Group’s stock price to drop, led to securities class actions against Apollo Group, and enhanced regulation and scrutiny by various government entities and regulators.
NASDAQ: APOL shares fell since as high as $89.22 in January 09 to as low as $35.36 per share in November 2010. NASDAQ:APOL shares reached in January 2012 as high as $57.70 per share. However since then NASDAQ:APOL shares lost significantly in value.
NASDAQ:APOL stocks closed on April 19, 2012 at $35.23 per share.
Those who purchased Apollo Group, Inc. (NASDAQ:APOL)