Aug. 23, 2010 (Business Wire) -- Goldfarb Branham LLP is investigating Lincoln Educational Services Corp. (NASDAQ: LINC) due to allegations that the company improperly inflated its financial results by manipulative recruiting tactics. Concerned investors should contact Hamilton Lindley at 877-583-2855 or hlindley@goldfarbbranham.com.
The complaint alleges that despite extensive positive statements by defendants in press releases and SEC filings, those statements were false because: (1) defendants had propped up the Company's results by fraudulently inducing students to enroll in Lincoln's scholastic and educational programs and engaged in other manipulative recruiting tactics; (2) defendants had materially overstated the Company's growth prospects by failing to properly disclose that defendants had engaged in illicit and improper recruiting activities, which also had the effect of artificially inflating the Company's reported results and future growth prospects; and (3) Lincoln did not maintain adequate systems of internal operational or financial controls, which would have permitted Lincoln's reported operational statements and foreseeable growth prospects to be true, accurate or reliable. Following these disclosures, shares of the Company collapsed -- falling over $4.30, or 20% in a single trading day, on unusually high trading volume.
If you own Lincoln Educational Services common stock and would like more information regarding your rights as a shareholder, please call the firm at 877-583-2855 or hlindley@goldfarbbranham.com. Goldfarb Branham LLP provides nimble, creative and aggressive representation of its clients. The firm has represented shareholders in securities litigation across the country.
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