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Pomerantz is investigating claims on behalf of investors of K12 Inc. (“K12” or the “Company”). Such investors are advised to contact Rachelle R. Boyle at rrboyle [at] pomlaw [dot] com or 888-476-6529, ext. 350.
The investigation concerns whether K12 and certain of its officers made materially false and misleading statements and omissions regarding the Company’s alleged abusive and deceptive student recruiting and flawed academic assessment practices, thereby increasing K12’s student enrollment and revenues.
On December 12, 2011, The New York Times released an article chronicling a myriad of improper practices at K12’s main virtual charter schools, including: a) high-pressure sales strategies aimed strictly at enrolling students, regardless of the students’ suitability for online education; b) administrative pressure to pass students, regardless of academic performance; and c) overall failure of K12 students to maintain grade-level performance in math and reading. The article further questioned Chief Executive Officer Ronald J. Packard’s upbeat characterization of K12 students’ performance on standardized tests in statements he made to investors, among other public statements.
On this news, the price of K12 stock dropped to 34%, or $9.89 per share on December 12, 2011, to close at $18.90 per share on December 16, 2011.