Pomerantz LLP has been appointed Lead Counsel in a class action lawsuit against Education Management Corporation.
The lawsuit alleges Education Management and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On September 16, 2014, the Company announced that it would be unable to timely file its Report on Form 10-K for the fiscal year ended June 30, 2014 without unreasonable effort or expense due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to revenue recognition and related bad debt reserves recorded upon student withdrawals from school. According to the release, the Company intends to file its June 30, 2014 Form 10-K upon resolution of these remaining comments raised by SEC.
On this news, shares of Education Management fell $0.12 per share to $1.10, or more than 9.84%, in intraday trading on September 17, 2014.