INVESTOR ALERT: Class Action Lawsuit Against Education Management Corporation Announced by Law Offices of Howard G. Smith

BENSALEM, Pa.--(BUSINESS WIRE)--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Western District of Pennsylvania on behalf of a class (the “Class”) comprising purchasers of the securities of Education Management Corporation (“EDMC” or the “Company”) EDMC between August 8, 2012 and September 16, 2014, inclusive (the “Class Period”). EDMC provides post-secondary education, including undergraduate and graduate degrees and specialized non-degree diplomas in North America, through campus-based and online instruction.

The Complaint alleges that defendants issued false and misleading statements or failed to disclose material information regarding the Company's business and operational and compliance policies; specifically: (1) that EDMC was overstating revenue by not properly increasing its bad debt reserve upon student withdrawals; (2) that the Company was overstating goodwill; (3) that EDMC manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011; and (4) that the Company's recruiting and enrollment practices violated federal regulations enacted in June 2011.

On September 16, 2014, EDMC notified the Securities and Exchange Commission that the Company would delay filing its Annual Report on Form 10-K for the period ended June 30, 2014, “due to unresolved comments from the Division of Corporation Finance of the Securities and Exchange Commission related to our revenue recognition and related bad debt reserve recorded upon student withdrawals from school.” Following this news, EDMC shares dropped almost 10%, or $0.12 per share, to close at $1.10 per share on September 17, 2014.

If you are a member of the Class described above, you have until November 18, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.