ITT Educational Services Class Action Lawsuit Filed
TO BUSINESS, EDUCATION AND LEGAL AFFAIRS EDITORS:
INDIANAPOLIS, Feb. 27 /PRNewswire-FirstCall/ -- ITT Educational Services, Inc. (NYSE: ESI) announced that the company and three of its senior officers have been named as defendants in a class action lawsuit filed on February 26, 2004 in the United States District Court for the Southern District of Indiana. The complaint alleges, among other things, that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b- 5 promulgated thereunder, by employing devices, schemes and artifices to defraud, making untrue statements of material fact and/or omitting to state material facts necessary to make statements not misleading and engaging in acts, practices and a course of business which operated as a fraud and deceit on the purchasers of ITT/ESI's securities in an effort to maintain artificially high market prices for its stock. The putative class period in such action is from April 17, 2003 to February 24, 2004. The plaintiffs are seeking, among other things, an award of unspecified compensatory damages, interest, costs and attorney's fees.
The defendants intend to vigorously defend against the allegations made in the complaint and stated that the company would not permit the litigation to distract it from delivering a quality education to its students.
Web site: http://www.ittesi.com.
SOURCE ITT Educational Services, Inc.