|TIME TO GET CAPELLA UNIVERSITY SHUT DOWN & THE SCUM BAG "LEADERSHIP" TO PAY! Refer to this site (although in 2010), as it MAY BE able to HELP YOU!November 05, 2010 11:06 AM (EDT)—BOCA RATON, FLORIDA -(BUSINESS WIRE)—Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Minnesota on behalf of purchasers of the common stock of Capella Education Company (“Capella” or the “Company”) (NASDAQ: CPLA) between February 16, 2010 and August 13, 2010, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).The complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose that: (i) the Company had engaged in improper and deceptive recruiting and financial aid lending practices and, due to the government’s scrutiny into the for-profit education sector, the Company would be unable to continue these practices in the future; (ii) the Company failed to maintain proper internal controls; (iii) many of the Company’s programs were in jeopardy of losing their eligibility for federal financial aid; and (iv) as a result of the foregoing, defendants’ statements regarding the Company’s financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.On August 13, 2010, after the market closed, the U.S. Department of Education released data on federal student-loan repayment rates at the nation’s colleges and universities. The data showed that repayment rates were 54% at public colleges and 56% at private non-profit institutions, compared to just 36% at for-profit colleges. Specifically, the data showed that the repayment rate at Capella was just 40%. On this news, the price of Capella stock dropped 13.19%, or $9.26 per share, from a closing price of $70.20 per share on August 13, 2010 to a closing price of $60.94 per share on August 16, 2010, the following trading day, on a 438% increase in trading volume.Plaintiff seeks to recover damages on behalf of all purchasers of Capella common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.|
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major cases pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ( has more information about the firm.