Law Firm Charges Corinthian Colleges, Inc. With Securities Fraud (COCO)

Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit in the United States District Court, Central District of California against Corinthian Colleges, Inc. COCO and certain of its top officials. The complaint alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) the Company overstated its growth prospects by engaging in illicit and improper recruiting activities, which also had the effect of artificially inflated the Company's reported results and future growth prospects; (2) the Company's financial results were overstated in that the Company's colleges inflated tuition costs and its student loan repayment rates were well below levels required for participation in federal loan programs; (3) the Company failed to maintain adequate systems of internal operational or financial controls; and (4) based on the foregoing, defendants lacked a basis for their positive statements about the Company, its prospects and growth. As a result of these revelations, the Company's stock fell from $9.25 on August 3, 2010 to $4.49 on August 20, 2010.