San Diego, CA -- (ReleaseWire) -- 06/16/2014 -- An investor who currently holds NYSE:ESI shares filed a lawsuit against directors of ITT Educational Services, Inc. (NYSE:ESI) over alleged breaches of fiduciary duties.
Investors who purchased shares of ITT Educational Services, Inc. (NYSE:ESI) in early 2013 or earlier have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that ITT Educational Services, Inc. concealed the nature of its exposure to mounting student loan defaults while assuring stockholders that its financials were in order.
The plaintiff claims that ITT Educational Services, Inc allegedly made false and misleading statements about its liabilities relative to third-party financing of its students, and that its tenuous financial condition and lack of adequate cash reserves allegedly led it to engage in predatory lending practices that pushed students into high-cost private loans that were likely to default
On February 22, 2013, ITT Educational Services filed its annual report. ITT Educational Services disclosed that it was being investigated by SEC concerning the company’s involvement in some private student-loan agreement. ITT Educational Services said it received a subpoena from the SEC on February 8, 2013. The subpoena issued by the SEC requested documents related to a 2009 loan risk-sharing agreement and its PEAKS Private Student Loan Program.
On February 26, 2014, a report stated that te Consumer Financial Protection Bureau (CFPB") filed a lawsuit against ITT Educational Services, Inc regarding its credit practices. The report stated that,The CFPB's lawsuit alleges that ITT Educational Services, Inc encouraged new students to enroll at ITT by providing them funding for this tuition gap with a zero-interest loan called "Temporary Credit.
Those who are current long term stockholders of shares of ITT Educational Services, Inc. (NYSE:ESI), have certain options and should contact the Shareholders Foundation.
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