Scott+Scott Attorneys at Law LLP Investigating Bridgepoint Education’s Directors and Officers for Breach of Fiduciary Duty – (NYSE: BPI)
NEW YORK–(BUSINESS WIRE)–Scott+Scott
Attorneys at Law LLP (“Scott+Scott”), a national securities and
consumer rights litigation firm, is investigating whether certain
directors and officers of Bridgepoint Education (“Bridgepoint” or the
“Company”) (NYSE:BPI) breached their fiduciary duties to Bridgepoint and
its shareholders. If you are a Bridgepoint shareholder, you are
encouraged to contact attorney Joe Pettigrew toll-free at (844) 818-6982
or at jpettigrew@scott-scott.com.
Bridgepoint, together with its subsidiaries, provides postsecondary
education services in the United States. As a means of increasing
enrollment, Bridgepoint formed various corporate partnerships with
employers to offer their employees a way to pursue and complete a
college degree without incurring any student debt, referred to as the
Corporate Full Tuition Grant (“FTG”) program. In 2017, enrollments in
Bridgepoint’s FTG program accounted for approximately 10% of its total
enrollment.
Scott+Scott is investigating whether Bridgepoint and its directors and
officers made, or allowed Bridgepoint to make, false and/or misleading
statements and/or failed to disclose that: (i) Bridgepoint’s processes
for recording revenue for its FTG program were inaccurate; (ii)
Bridgepoint maintained deficient internal controls; (iii) due to the
foregoing deficiencies, Bridgepoint was prone to, and did, commit
material accounting errors related to revenue, provision for bad debts,
accounts receivable, and deferred revenue, which resulted in the
overstatement of revenue and expenses; and (iv) as a result,
Bridgepoint’s public statements were materially false and misleading at
all relevant times.
On March 7, 2019, Bridgepoint announced that it had “determined to
restate the Company’s previously issued unaudited condensed consolidated
financial statements, and advised that those financial statements should
not be relied upon, for the three and nine months ended September 30,
2018.” Bridgepoint stated that the processes used for recording revenue
for the FTG program portion of its student contracts “were not designed
with sufficient precision,” leading to “material” accounting errors
related to revenue, provision for bad debts, accounts receivable, and
deferred revenue, which resulted in the overstatement of revenue and
expenses. Bridgepoint also identified weaknesses in internal controls.
On this news, Bridgepoint’s stock price plummeted by $3.21 per share, or
over 34%, to close at $6.22 per share on March 7, 2019, on unusually
heavy trading volume.
What You Can Do
If you are a Bridgepoint shareholder, you may have legal claims against
the Company’s directors and officers. If you wish to discuss this
investigation, or have questions about this notice or your legal rights,
please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or at jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities,
antitrust, and employee retirement plan actions throughout the United
States. The firm represents pension funds, foundations, individuals, and
other entities worldwide with offices in New York, London, Amsterdam,
Connecticut, California, and Ohio.
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Contacts
Joe Pettigrew
Scott+Scott
Attorneys at Law LLP
(844) 818-6982
jpettigrew@scott-scott.com