San Diego, CA -- (ReleaseWire) -- 10/02/2012 -- An investigation on behalf of current long-term investors in shares of K12 Inc. (NYSE:LRN) was announced over potential breaches of fiduciary duties by certain directors and officers at K12 Inc.
Investors who are current long term stockholders of shares of K12 Inc. (NYSE:LRN), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain K12 Inc. officers and directors breached their fiduciary duties to the Company and damaged K12 by, among other things, engaging in deceptive recruiting and sales strategies and misrepresenting the Company’s empirical academic performance, financial performance and business and financial prospects.
K12 provides online learning. In the end of 2011 a media report entitled “Profits and Questions at Online Charter Schools” raised concerns about K12’s business practices, alleging that its schools inflate their student rosters, are underperforming academically, have detrimental student-to-teacher ratios and gain wrongful access to public funds. K12 Inc. also reportedly faces an investigation by the Florida Department of Education over allegations that it used uncertified teachers and tried to get employees to assist in concealing that fact.
K 12 Inc. (NYSE:LRN) announced that its Total Revenue rose from $315.57 million for the 12 months period that ended on June 30, 2009 to $708.41 million for the 12 months period that ended on June 30, 2012. However, its Net Income fell from $21.52 million for the 12 months period that ended on June 30, 2010 to $17.54 million for the 12 months period that ended on June 30, 2012.
Shares of K12 Inc. (NYSE:LRN) grew from as low as $13.67 in April 2009 to as high as $39.37 per share in April 2011.
However, NYSE:LRN shares fell towards the end of 2011 to as low as $17.52 per share.
On October 1, 2012, NYSE:LRN shares closed at $20.35 per share, significantly below its 52 week High of $37.00 per share.
Those who are current long term stockholders of shares of K12 Inc. (NYSE:LRN), you have certain options and you should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego