Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Ambassadors Group, Inc. (NASDAQ: EPAX) ("Ambassadors" or the "Company"). Ambassadors is an education company that organizes and promotes educational travel and sports programs for students, athletes, and professionals. Ambassadors was founded in 1967 and is headquartered in Spokane, Washington.
Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements causing the stock to trade at inflated prices.
In particular, the investigation concerns whether the Company's fiduciaries knowingly or recklessly failed to disclose when announcing Ambassadors' business prospects: (a) that it was experiencing a lower conversion rate from people attending its informational meetings to booking travel; (b) there was a decrease in the number of enrolled participants for the Company's 2008 travel programs, especially in its international outbound programs; and (c) the Company had utilized a different database in order to promote its travel programs to prospective clients. On October 23, 2007, Ambassadors held a conference call regarding the Company's declining outlook for 2008. As a result of this announcement, shares of Ambassadors fell $17.73, a decline of more than 44% to close at $21.03 per share on October 24, 2007.
In November 2009, Ambassadors disclosed that the U.S. Securities and Exchange Commission had issued a formal order of investigation with respect to trading in the Company's securities. In addition, certain of the Company's officers, directors, and employees received subpoenas from the SEC requesting information.If you are a shareholder of Ambassadors, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org. Robbins Umeda LLP is a securities litigation firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com. Advertisement