Former Attorney General of Louisiana, Charles C. Foti, Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) announce the commencement of an investigation into Corinthian Colleges Inc. ("COCO" or the "Company") (Nasdaq: COCO) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.
COCO shares tumbled 22% to close at $5.22 per share today, after the U.S. Department of Education (“DOE”) released data on how rapidly students repay their federal student loans, a key factor that could affect the ability of COCO to receive government-backed student loans. According to a Barron’s article today, Deutsche Bank analyst Paul Ginocchio today cut his rating on the stock to “Hold” from “Buy,” writing that the firm’s low rate of student low repayment — just 22% — combined with high rates of loan defaults, will “make the next few years challenging.” 83% of the company’s enrollment is at its campuses whose loan repayment rate is below the 35% threshold the Department of Education is prepared to demand as the minimum for receipt of federal Title IV loans, writes Ginocchio.
Today’s news follows reports by the U.S. Government Accountability Office (“GAO”) that implicated for-profit colleges in an investigation alleging that prospective students were misled about their future earning power and job prospects.
If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call KSF Director of Client Relations, Neil Rothstein, Esq. (
), toll free at 877-694-9510, or via cell phone 330-860-4092, or KSF Managing Partner, Lewis Kahn (
), toll free 1-866-467-1400, ext. 200, after hours via cell phone 504-301-7900. KSF attorneys have significant experience in representing both institutional and individual shareholders in securities fraud litigation nationwide. KSF encourages both institutional and individual purchasers of COCO to contact the firm to discuss the investigation.
For more information on KSF, please visit