A NYC-based law firm has filed a class-action lawsuit in a federal court in Virginia against K12, Inc., the for-profit virtual school company, claiming that its top officials intentionally misled the public and investors about its quality of the education.
The lawsuit was filed Jan. 30, as reported here by the Washington Post.
The claims of fraud at the top levels of the company should be of particular interest here in North Carolina after the company, K12, Inc., (NYSE:LRN) edged its way into a partnership with the Cabarrus County school system to try and tap into state education dollars.
Stock for the virtual school company had been steadily rising (a high of $39.74 was reached last April) since its 2007 emergence on the market, but plummeted after a critical New York Times article late last year, “Online schools fare better on Wall Street than in classrooms.” The Times investigation found that the company pushed to bring in more profits while students were failing and falling far behind their traditional school peers.
K12 stock was trading at $21.63 a share mid-day today.
For the rest of the article, go to Virtual charter school company with NC intentions slapped with class-action lawsuit

