SHAREHOLDER ALERT: Lundin Law PC Announces Securities Class Action Lawsuit against K12, Inc. and Encourages Investors with Losses to Contact the Firm

LOS ANGELES, CA / ACCESSWIRE / August 10, 2016 / Lundin Law PC (the “Firm”) announces that a class action lawsuit has been filed against K12, Inc. (“K12” or the “Company”) (LRN) concerning possible violations of federal securities laws between November 7, 2013 and October 27, 2015 (the “Class Period”). Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm in advance of the September 19, 2016 lead plaintiff motion deadline.

To participate in this class action lawsuit, click here. You can also call Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or e-mail him at brian@lundinlawpc.com.

No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.

According to the complaint, K12 issued false and misleading statements and/or failed to disclose: that the Company published misleading advertisements about students’ academic progress, parent satisfaction, graduates’ eligibility for admission into the University of California and California State University, class sizes, the individualized and flexible nature of K12’s instruction, hidden costs, and the quality of the materials provided to students; that the Company submitted inflated student attendance numbers to the California Department of Education in order to receive additional funding; that K12 was open to potential civil and criminal liability due to these practices; that K12 would likely be forced to end these practices, which would have a negative impact on its operations and prospects; and as a result of the above, the Company’s public statements were materially false and misleading at all relevant times. When this news was disclosed, shares of K12 decreasing in value, causing investors harm.

Lundin Law PC was founded by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding shareholders’ rights.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contact:

Lundin Law PC Brian Lundin, Esq. Telephone: 888-713-1033 Facsimile: 888-713-1125 brian@lundinlawpc.com http://lundinlawpc.com/

SOURCE: Lundin Law PC

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Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of K12 Inc. Investors and Encourages Investors to Contact the Firm

July 20, 2016 02:33 PM Eastern Daylight Time

LOS ANGELES–(BUSINESS WIRE)–Glancy
Prongay & Murray LLP
(“GPM”) announces that it has filed a class
action lawsuit in the United States District Court for the Northern
District of California on behalf of investors who purchased K12 Inc.
(“K12” or the “Company”) (NYSE: LRN)
securities between November 7, 2013, and October 27, 2015,
inclusive (the “Class Period”). K12 investors have sixty days from
the date of this notice
 to file a lead plaintiff motion.

Investors suffering losses on their K12 investments are encouraged to
contact Lesley Portnoy of GPM to discuss their legal rights in this
class action at 310-201-9150 or by email to shareholders@glancylaw.com.

The complaint filed in this lawsuit alleges that throughout the Class
Period, Defendants made materially false and/or misleading statements,
as well as failed to disclose material adverse facts about the Company’s
business, operations, and prospects. Specifically, Defendants made false
and/or misleading statements and/or failed to disclose: (1) that K12 was
publishing misleading advertisements about students’ academic progress,
parent satisfaction, their graduates’ eligibility for University of
California and California State University admission, class sizes, the
individualized and flexible nature of K12’s instruction, hidden costs,
and the quality of the materials provided to students; (2) that K12
submitted inflated student attendance numbers to the California
Department of Education in order to collect additional funding; (3)
that, as a result of the aforementioned practices, the Company was open
to potential civil and criminal liability; (4) that the Company would
likely be forced to end these practices, which would have a negative
impact on K12’s operations and prospects, and/or that K12 was, in fact,
ending the practices; and (5) that, as a result of the foregoing,
Defendants’ statements about K12’s business, operations, and prospects,
were false and misleading and/or lacked a reasonable basis.

If you purchased shares of K12 during the Class Period you have sixty
days from the date of this notice
to ask the Court to appoint you as
lead plaintiff if you meet certain legal requirements. To be a member of
the Class you need not take any action at this time; you may retain
counsel of your choice or take no action and remain an absent member of
the Class. If you wish to learn more about this action, or if you have
any questions concerning this announcement or your rights or interests
with respect to these matters, please contact Lesley Portnoy, Esquire,
of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067
at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com,
or visit our website at http://glancylaw.com.
If you inquire by email please include your mailing address, telephone
number and number of shares purchased.

This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.

Contacts

Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or 888-773-9224shareholders@glancylaw.comhttps://www.glancylaw.com

Glancy Prongay & Murray LLP

Release Summary

Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of K12 Inc. Investors and Encourages Investors to Contact the Firm

Contacts

Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or 888-773-9224shareholders@glancylaw.comhttps://www.glancylaw.com

Why Calumet Specialty Holdings, Primero Mining, and K12 Slumped Today

Even in a strong market, these stocks fell. Find out why.

Image: Primero Mining.

Monday was a strong day for the stock market, and bullish market participants celebrated the Dow’s moving above 18,000 almost as much as when it first surpassed that milestone. Stocks overcame initial negative sentiment from the weekend’s failure among oil-producing nations to come up with a definitive agreement controlling the price of crude, and it now appears that investors might be looking to see if the Dow and other major market benchmarks can climb back into record-high territory in the near future. Even with good cheer on Wall Street, some stocks didn’t join in the rally, and Calumet Specialty Products (NASDAQ:CLMT), Primero Mining (NYSE:PPP), and K12 (NYSE:LRN) were among the worst performers in the market Monday.

Calumet plunged 48% after the producer of specialty hydrocarbon products and fuels said late Friday that it would suspend its quarterly cash distribution and take other measures to add liquidity for its business operations. Calumet completed a private placement of five-year senior secured notes, paying an interest rate of 11.5% and offering a first-priority security interest on all fixed assets under the agreements governing the company’s overall credit. Calumet will use the proceeds to refinance borrowing under its revolving credit facility, but investors worry that the decision from credit rating agency Moody’s to cut Calumet’s overall rating to Caa1 shows that the company’s actions come too late and fall short of providing enough relief from high leverage to reduce risks substantially.

Primero Mining dropped 16% in the wake of its release of preliminary first-quarter operating results. The gold miner highlighted safety as its top priority following a fatal accident at its San Dimas facility last year, but it said that it only managed to produce about 36,000 gold-equivalent ounces during the quarter at an all-in sustaining cost of $1,556 per ounce. That production was down 40% from year-earlier levels, and the costs involved soared by half due largely to changes in standards for ground support at the San Dimas mine. Even worse, Primero cut its full-year production estimates by 30,000 ounces to a range of 230,000 to 250,000 ounces, and it boosted its cost estimates by $125 per ounce to a new range of $975 to $1,025 per ounce. Despite gold’s solid performance, costs above $1,500 for a quarter are unsustainable unless the market starts behaving much better.

Finally, K12 fell 7%. The online educational services provider was the subject of a critical news article in the San Jose Mercury News over the weekend, which reported that online academies that K12 operates are “failing key tests used to measure educational success.” The piece cited statistics that more than half of those who enroll in online high schools fail to earn a diploma, and few qualify for the standards that California’s state-run public universities set for college students. For its part, K12 said that its students don’t have the same results as schools in higher-income areas with more access to funding, and it defends its model as educationally appropriate. Nevertheless, allegations of inflated attendance and enrollment records cast K12 in a negative light, threatening to add the pre-college-oriented company to the long list of for-profit college educational institutions that have been controversial for years.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Online Charter School Operator K12 Names New CEO


Feb 9, 2016


K12, a for-profit operator of online charter schools, has named Stuart J. Udell as its CEO. Udell previously served as the CEO of Catapult Learning, a provider of K12 instructional services and professional development. K12 said in a statement that Udell doubled Catapult’s revenue during his tenure. He also worked for 11 years at Kaplan, finishing his term there as president of Kaplan K12 Learning Services.

According to Edweek Market Brief, Udell replaces Nathaniel Davis, who will remain at the company as executive chairman of its board of directors. K12 has been a hotbed of activity of late, launching a foundation after facing a chaotic shareholder meeting when investors censured the former CEO for high pay.

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Investors and Teachers Unions Upbraid Online Charter School Operator K12


Dec 17, 2015

THE WINTER OF OUR DISCONTENT: K12, an online charter school provider, held its annual investor meeting December 16 to disastrous results. Investors voted down the company’s plan for executive pay, and teachers unions and representatives from K12’s own schools protested outside the meeting. Advisory firm Glass Lewis & Co. advised shareholders to vote against the pay proposal because of a “substantial disconnect between compensation and performance results,” Buzzfeed News reports. K12’s stock is down 75 percent from a high in 2013.

K12 is faced with damning evidence. A 2015 report found that students enrolled in K12’s schools and other online charters did not measure up to their peers at offline schools. California’s attorney general Kamala Harris has also opened an investigation into K12’s practices. As for the executive pay, K12 paid CEO Nathaniel Davis $5.33 million and its chief financial officer $3.6 million in 2015.

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Enrollment At Nation’s Largest For-Profit Charter Operator Still Growing Despite Lawsuits, Regulatory Problems

K12 Inc. is facing a litany of regulatory problems and a new shareholder lawsuit, but as long as new students are signing up, none of that matters to investors.

Molly Hensley-Clancy

BuzzFeed News Reporter

A K12 student does coursework in of the company’s virtual charter schools.

The problems plaguing K12 Inc., the country’s largest publicly traded virtual charter operator, are no secret. They’ve been hit with two shareholder lawsuits, subjected to state investigations, and weathered exposes in the New York Times and the Associated Press.

But in their quarterly earnings call today, K12 reported that enrollment has grown yet again, swelling to 125,000 students — an increase of more than 5% since March of last year. Their revenue, which topped $235 million, actually exceeded analysts’ estimates, as did their operating margins. Net income was $15.9 million.

Enrollment is what matters to the company and its shareholders: each student that signs up for K12’s online schools comes with public funding attached, and as long as enrollment grows, revenue likely will, too.

Though enrollment is growing, as many as 50% of K12’s students drop out within a year, according to Gary Miron, a researcher with the National Education Policy Center at the University of Colorado. Because funding is allocated on a yearly basis in most states, however, Miron says that doesn’t matter much to K12’s bottom line.

“It doesn’t really hurt them because if the student leaves, the money stays,” Miron said. “They can just enroll another student the next year.”

A representative for the company disputed Miron’s analysis, saying, “K12 is not paid for the students who are not there.”

In addition to high dropout rates, K12’s student outcomes are notoriously poor, with students performing worse than their counterparts in brick-and-mortar schools. As a result, just a quarter of their schools meet adequate yearly progress metrics. Just like for-profit giants University of Phoenix and Everest College, K12 attributes these outcomes to the higher numbers of poor and academically challenged students it enrolls, and the high turnover among its students.

After a 2011 article in the New York Times highlighted the company’s many problems with student performance, shareholders filed suit against K12, alleging that they had been misled about student outcomes and had boosted its enrollment and revenue by using “deceptive recruitment” practices. That lawsuit was eventually settled last year, although a portion of its claims were voluntarily dismissed. A second one is in the works, according to an announcement by law firm Levi & Korsinsky.

A K12 representative noted that the company has seen academic improvement “in some areas.”

Prominent hedge fund manager Whitney Tilson, of Kase Capital, has been one of K12’s biggest critics, announcing last year that the company was his biggest short position.

Though legislators and state education departments have started to go after K12 and its smaller counterparts, Miron said most attempts to close down or limit funding to underperforming virtual charter schools have been settled or dropped altogether.

On the company’s earnings call, executives assured investors that the latest attempt to scale back virtual schools, a Pennsylvania bill that targets online charter funding, would have minimal impact.

Why K12 Inc. Stock Fell 22% in October

The for-profit educator continues to struggle in 2015.

What: Shares of childhood educator K12 Inc(NYSE:LRN) were sent to the principal’s office last month, falling 22% according to data from S&P Capital IQ. As the chart below shows, the stock skidded late in the month following an unimpressive earnings report.

LRN data by YCharts

So what: The school-aged curriculum provider posted first quarter revenue of $221.2 million, down 6% from a year ago, but that drop was largely due to the Agora Cyber School’s shift from a managed curriculum to a non-managed curriculum. More importantly, K12 posted a loss of $0.34 per share for the summer months, which are typically loss-generating for the company, worse than an expected $0.30 shortfall. Another warning sign was that overall enrollment fell by about 7,000 in the quarter, or 5%.

As the for-profit college industry has crumbled, pressure on K12 stock has increased, and the stock now trades at an all-time low. What was once a high-growth company is on the decline as skepticism about for-profit education has spread quickly.

Now what: Revenue growth at K12 has flatlined, and even after lapping the Agora shift next year, analysts are only expecting a 4% increase in sales. The decline in K12 stock has made its valuation much more reasonable at a price-to-earnings around 15 times, but the company will need to show it can deliver profitable growth before shares move higher. Revenue guidance for the next quarter at $205 to $215 million is in line with expectations, but it remains unclear how management plans to return the company to growth. Earnings per share are expected to fall by more than half, in part due to the loss of Agora as a managed program, but that was because the school did not make adequate yearly progress according to No Child Left Behind.

As the government continues to crack down on underperforming for-profit schools, the potential for another such development remains. Until K12 can reassure investors that its schools are delivering positive results, the company is unlikely to find significant growth, and the stock will remain mired in the single digits. 

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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K12 Inc. (NYSE:LRN) under Investigation for Investors

by Michael Daniels Nov 18, 2015 10:21 am EST

K12, Inc is under investigation over possible violations of securities laws. The investigation was announced for investors in NYSE:LRN shares in connection certain financial statements.

Investors who purchased shares of K12 Inc. (NYSE:LRN), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

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.

UPDATED: Today’s Top 50 Trending Stocks

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.

Those who purchased NYSE:LRN shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

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K12 Inc (NYSE:LRN) Expected to Report $-0.26 Per Share

Oct 12, 2015
Markets Staff

All eyes will be on K12 Inc (NYSE:LRN) when the firm issues their quarterly earnings report, which is expected to go out this week. Analysts on Wall Street, on a consensus basis, are expecting the firm to report earnings of $-0.26 per share for the fiscal quarter. In comparing to last quarter, K12 Inc posted EPS of $0.18 for the period which ended on 2015-06-30.

Investors will be paying particularly close attention to how the expected EPS consensus number compares to the actual reported EPS. If the actual greatly differs from the consensus estimate, then a sharp price movement is likely in the days following the report. Last quarter the firm posted a surprise factor of 100. Before the earnings announcement, the standard deviation for the earnings per share estimates was 0.

Now taking a look at where research firms see the stock heading short term, the analyst consensus price target for K12 Inc (NYSE:LRN) is currently at $N/A. There are N/A analysts in total total that contribute to the Zacks consensus target. The most bearish price target has the stock at $N/A within the year. The most bullish analyst price target sees the stock at $N/A.

K12 Inc (NYSE:LRN) has an average broker recommendation of 2. This is based on a scale of 1 to 5 where a 1 would constitute a strong buy and 5 represents a strong sell recommendation. This number is based on the average of N/A brokers polled by Zacks Research. Comparatively, the stock had a rating of 2 three months ago.

Governor Brown has until October 11 to sign or veto legislation that would ban for-profit charter schools in California. it is outrageous to squander taxpayer dollars on profits for investors and outrageous executive salaries. This bill should be a slam dunk for Governor Brown, a man with a keen sense of justice. Now I hope the legislature tightens oversight of nonprofit charter schools and reviews their executive salaries to be sure that they really are nonprofit. And while they are at it, they should ban charter schools in affluent communities, which violate the spirit if the charter movement, which wassupposedto help the neediest kids, not to enable rich parents to create a publicly-funded private school for their children.

Here is the legislation awaiting Governor Brown’s signature:

“For-profit charter schools: Charter schools run by for-profit corporations would not be allowed in California under the terms of AB 787, authored by Assemblyman Roger Hernández, D-West Covina, which passed the Legislature. Six for-profit charter schools operate in the state, and California Virtual Academies, managed by the for-profit K12 Inc., is the largest. The bill’s author noted that K12 paid its top six executives a total of nearly $11 million in 2011-12, while the average California Virtual Academies teacher’s salary was $36,150, about half of the average teacher pay in the state. The author raised the question of whether a for-profit corporation would try to limit services to students to increase profits.”

via Diane Ravitch’s blog http://ift.tt/1PNH93t