NEW YORK, July 19, 2012 /PRNewswire/ -- Harwood Feffer LLP ( www.hfesq.com) is investigating potential claims against the board of directors of Bridgepoint Education, Inc. ("Bridgepoint" or the "Company") (NYSE: BPI) concerning whether the board has breached its fiduciary duties to shareholders.
Bridgepoint operates Ashford University ("Ashford"), the University of the Rockies, and online institutions. During May and June 2011, the eligibility review committee of the Western Association of Schools and Colleges ("WASC") notified Ashford that its accreditation was at risk due to: (a) inadequate student retention and completion, (b) insufficient student progress tracking, (c) an insufficient core of full-time faculty members, and (d) lack of an empowered and independent governing board.
On June 25, 2012, the Higher Learning Commission ("HLC") notified Ashford that it has until December 1, 2012 to demonstrate that it has a "substantial presence" in the 19-state north central region of the United States. On July 9, 2012, Bridgepoint filed a Form 8-K with the SEC disclosing that on July 5, 2012, Ashford had received an official notice denying its accreditation application by the Accrediting Commission for Senior Colleges and Universities of the WASC. Subsequently on July 9, 2012, Bridgepoint issued a press release announcing that Ashford would appeal the decision and re-apply for WASC accreditation. On this news, shares of Bridgepoint common stock dropped nearly 34%, closing at $14.25 per share on July 9, 2012 from $21.50 the previous day, on volume of 1.2 million shares.If you own Bridgepoint shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact: