NEW YORK, May 20, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against DeVry Education Group, Inc. (“DeVry” or the “Company”) (NYSE:DV), and certain of its officers.   The class action, filed in United States District Court, Northern District of Illinois, is on behalf of a class consisting of all persons or entities who purchased DeVry securities between February 4, 2011 and January 27, 2016 inclusive (the “Class Period”).  This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).  

If you are a shareholder who purchased DeVry securities on or after February 4, 2011, you have until July 12, 2016 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

[Click here to join this class action]

DeVry provides educational services worldwide through a number of subsidiaries, including DeVry University (“DVU” or “DeVry University”), one of the largest degree-granting higher education systems in the United States. Through its five colleges, DeVry University offers programs in healthcare, business, technology, accounting, finance and law.

Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, cash position, prospects, and internal controls.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 90% of DeVry University students from a specific year (e.g., graduates from 2011-2016) who were actively seeking employment did not in fact land or obtain new jobs in their field of study within six months of graduation; (ii) 90% of DeVry University students since 1975 who were actively seeking employment did not in fact land or obtain new jobs in their field of study within six months of graduation; (iii) one year after graduation, the average or median salary of DeVry University graduates with bachelor’s degrees was not in fact 15% higher than the average or median salary of graduates with bachelor’s degrees from all other colleges and universities; (iv) as a result, DeVry overstated its growth, revenue, and earnings potential by concealing the true employment prospects of DeVry University graduates to investors and potential students; and (v) as a result of the foregoing, Defendants’ statements about DeVry’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.

On January 27, 2016, the FTC shocked the market when it filed suit against DeVry for engaging in deceptive practices by purposefully misrepresenting the benefits of obtaining a degree from DeVry University.

Also on January 27, 2016, the U.S. Department of Education issued DeVry University a Notice of Intent to Limit DeVry’s participation in programs authorized pursuant to Title IV of HEA, after finding that DeVry was in violation of federal law.

As a result of these shocking disclosures, DeVry’s common stock price dropped 15%, or $3.65 per share, from $23.68 per share on January 26, 2016 to $20.09 per share closing on January 27, 2016—wiping out over $230 million in the Company’s market capitalization in one day, on unusually heavy volume.

Over the next several trading days, DeVry’s stock price continued to trade lower, closing at $18.08 on February 2, 2016. In total, from January 27, 2016 to February 2, 2016, DeVry’s stock price share price dropped $5.66 per share, or 24%, wiping out approximately $360 million of the Company’s market capitalization.

The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com

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