On October 8, 2013, K12 announced in a Form 8-K filed with the SEC that its actual fiscal 2014 revenue guidance was $905 million to $925 million, far less than the $986.8 million figure they had endorsed only weeks earlier, because 2014 enrollments were below the levels that investors had been told to expect due to operational and performance deficiencies at K12’s enrollment centers. Additionally, defendants stated that the Company had failed to “appropriately” consider increased compliance requirements in certain states in the fiscal 2014 enrollment season. On this news, the price of K12 stock dropped $10.99, or 38.4%, from a closing price of $28.59 on October 8, 2013, to close at $17.60 on October 9, 2013, on extremely heavy trading volume.About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the common stock of K12, Inc. (“K12” or the “Company”) (NYSE:LRN) between March 11, 2013 and October 9, 2013, inclusive (the “Class Period”). If you purchased or acquired K12 common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 1, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action. K12 investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358. Background on the K12 Securities Class Litigation K12, based in Herndon, Virginia, is a technology-based education company engaged in the operation and expansion of virtual schools for students in kindergarten through 12th grade. The action alleges that defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially misleading statements and omitting material information about the Company regarding its student enrollment and revenue growth prospects for fiscal 2014, as well as its compliance with state regulations governing enrollment. During the Class Period, K12 publicly endorsed analysts’ fiscal 2014 financial guidance for the Company and assured investors that K12 was “on track to have one of the best business development years” in its history, which was supposed to “drive even higher growth for fiscal 2014” than in fiscal 2013. Defendants also allegedly falsely touted K12’s “serious” attention to regulatory compliance.