For-profit education stocks got a lift Tuesday after
announcement that part of a regulatory probe into its business practices has ended.
The company said the corporate finance division of the
Securities and Exchange Commission
ended its investigation into the company's accounting related to bad debt with no comments about any findings of wrongdoing. A separate investigation by the SEC's enforcement division, which investigates securities law violations, is ongoing.
The for-profit education industry has come under scrutiny amid a class-action suit that accuses Career Education of manipulating enrollment figures to attract investors. At the company's annual meeting in May, some shareholders expressed dissatisfaction with the company's corporate governance practices.
Shares of Career Education were recently up $2.07, or 6.4%, to $34.45, while other education stocks were rising in sympathy.
was adding 71 cents, or 4.5%, to $16.30;
was up $2.06, or 2.8%, to $76.16; and
ITT Educational Services
was up 51 cents, or 1%, to $48.90.