LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of K12 Inc. (“K12” or the “Company”) (NYSE: LRN) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your K12 investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/k12-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
On August 26, 2020, reports surfaced that K12’s training for teachers on its online education platform in Miami-Dade County Public Schools, one of the largest school districts in the country, had been ineffective and “unacceptable.”
On this news, the Company’s stock price fell $5.87, or 13.5%, over the course of two trading days to close at $37.70 on August 27, 2020.
On August 31, 2020, when classes in Miami-Dade started, K12’s platform experienced major technical issues, disruptions, and a series of cyberattacks. During a district Board meeting to discuss the problems with K12’s platform, the district’s superintendent revealed that the district had never executed its $15.3 million contract with K12.
On this news, the price of K12 shares fell by $3.96, or 10.2%, over the course of two trading days, to close at $34.89 on September 3, 2020.
A week later, facing overwhelming complaints from parents and teachers about K12’s platform and curriculum, the Miami-Dade County Public Schools Board voted to terminate its contract with K12.
On this news, the Company’s stock price fell by $3.21, or 9.5%, to close at $30.55 on September 10, 2020.
On September 17, 2020, due to the lack of confidence in K12’s ability to provide educational solutions for the district, the Beaufort County School Board also voted to terminate its contract with K12.
On this news, the Company’s stock price fell $1.09, or 3.9%, to close at $27.21 on September 18, 2020.
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Whistleblower Notice: Persons with non-public information regarding K12 should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected]
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