The Brualdi Law Firm Announces Class Action Lawsuit Against Officers of ITT Educational Services, Inc.
NEW YORK, Feb. 27, 2004 (PRIMEZONE) -- A class action lawsuit has been filed by The Brualdi Law Firm in the United States District Court for the District of Indiana on behalf of purchasers of ITT Educational Services, Inc. ("ITT" or the "Company") (NYSE:ESI), common stock between April 17, 2003 and February 27, 2004, inclusive (the "Class Period"). You may obtain a copy of the complaint from the Court or from The Brualdi Law Firm.
The complaint alleges that the Company's Class Period representations regarding its quarterly performance, made in press releases and SEC filings, were each materially false and misleading because they failed to disclose that: (1) ITT Educational had systematically falsified records, such as those relating to enrollment, graduation and job placement rates, in order to artificially inflate its reported operational and financial performance; (2) a material portion of the Company's reported revenues were derived through fraudulent business practices, such as federal grants and financial aid payments that were secured through falsified records; (3) the Company's reported results did not accurately portray the Company's operations because a material portion of those results were not attributable to prohibited practices; and (4) that the Company's results were not prepared and reported in accordance with generally accepted accounting principles and did not fairly present its actual financial results or condition.
On February 25, 2004, before the opening of ordinary trading, the Company issued a press release announcing that it had been served with a search warrant and related grand jury subpoenas at its corporate headquarters and several of its schools. In reaction to this announcement, the price of ITT Educational common stock plummeted, falling from $57.40 per share on February 24, 2004 to close at $38.50 on February 25, 2004 -- a one-day drop of 33% on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by The Brualdi Law Firm which has significant experience and expertise in prosecuting class actions on behalf of investors and shareholders. The firm's success in securities litigation has resulted in many millions of dollars being recovered by shareholders. The Brualdi Law Firm's quality of service has been recognized in numerous court decisions.
If you bought the securities of ITT between April 17, 2003 and February 24, 2004 and sustained damages, you may, no later than April 26, 2004, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca
CONTACT: The Brualdi Law Firm
Richard B. Brualdi, Esq.
Kevin T. O'Brien, Esq.
Gaitri Boodhoo, Esq.
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