EQUITY ALERT: The Rosen Law Firm Announces Investigation of Securities Claims Against ITT Educational Services Inc.
The Rosen Law Firm, P.A. announces that it is investigating potential securities claims against ITT Educational Services Inc. (NYSE:ESI) resulting from allegations that the Company may have issued materially inaccurate statements about the Company’s financial condition and prospects.
On May 22, 2014, ITT announced that it was withdrawing its 2014 financial forecast and investors should no longer rely upon it due to uncertainties surrounding the accounting of its PEAKS private student loan program and its guarantee obligations under it, which was also causing the delay in the filing of its 2013 annual report. In reaction to this news, shares of ITT fell $5.30, or approximately 21%, to close at $20.50 per share on May 22, 2014, damaging investors.
On June 24, 2014, ITT disclosed that the unaudited financial statements in its Form 10-Q filed with the SEC for each of the fiscal quarters ended March 31, 2013, June 30, 2013 and September 30, 2013 should no longer be relied upon and need to be restated. The Company determined it should have consolidated the financial results of the trust that purchased, owns, and collects private education loans made under PEAKS.
On September 19, 2014, ITT revealed that it was notified by the SEC that it has made a preliminary determination to recommend an enforcement action against the Company concerning two private education loan programs for its students. The enforcement action would allege various violations of the Securities Exchange Act of 1934. On this news, shares of ITT fell $2.70, or over 35%, to close at $4.95 per share on September 19, 2014, further damaging investors.
The Rosen Law Firm is preparing a securities class action lawsuit on behalf of ITT investors. If you purchased ITT stock prior to September 19, 2014 please visit the website at http://www.rosenlegal.com/cases-282.html to join the class action. You may also contact Phillip Kim, Esq. or Kevin Chan, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at email@example.com or firstname.lastname@example.org.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
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