K12 Inc. (NYSE:LRN) under Investigation for Investors
The investigation by a law firm focuses on possible whether a series of statements by K12 Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
K12 Inc. reported that its Total Revenue increased from $848.22 million for the 12 months period that ended on June 30, 2013 to$948.29 million for the 12 months period that ended on June 30, 2015 while its Net Income for those respective time periods declined from $28.11 million to $10.99 million. Shares of K12 Inc. (NYSE:LRN) reached as high as $36.78 per share in September 2013.
On October 27, 2015, post-market, K12 disclosed receipt on September 24, 2015 of a civil investigative subpoena from the Attorney General of California in connection with an industry-wide investigation into for-profit virtual schools. Shares of K12 Inc. (NYSE:LRN) declined to as low as $9.01 per share on November 13, 2015.
On November 17, 2015, NYSE:LRN shares closed at $9.31 per share.