Shares in education company Corinthian Colleges(COCO) fell quickly and furiously on rumors of a civil lawsuit against the company, two days after reports that a competitor was hit by an employee complaint alleging improper activity.
The company said: "It knows of no events or activities that would warrant any concern in the company's performance." In a statement, it added that "the extraordinary nature of this morning's trading and the subsequent trading halt warranted this assurance to shareholders."
At one point, Corinthian shares were down as much as 33% in trading, 10 times normal volume. The selloff was so swift and vicious that trading was halted and the Nasdaq also cancelled all trades of Corinthian shares between 10:46 a.m. and 10:58 a.m. EST. Recently, shares were down $2.29, or 4%, to $55.23.
Corinthian shares had already fallen 17% this week, following news Wednesday that an employee at postsecondary education rival Career Education(CECO) filed a complaint alleging officials had forged signatures and tampered with student files in an effort to inflate enrollment and company profits.
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
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| 12,801.23 | 1,342.64 | 2,903.88 | 19.69 |
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