Rigrodsky & Long, P.A. Announces A Securities Fraud Lawsuit Has Been Filed Against K12 Inc.

Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia (the “Complaint”) on behalf of all persons or entities who purchased or otherwise acquired the stock of K12 Inc. (“K12” or the “Company”) (NYSE: LRN) during the period September 9, 2009 and December 16, 2011, inclusive (the “Class Period”).  

K12 is a technology-based education company that offers proprietary curriculum, software systems and educational services for kindergarten through the 12^th grade.  The Company provides educational content to students through online schools and by direct sales to school districts.

The Complaint alleges that defendants, the Company and certain of its officers, made materially false and misleading statements during the Class Period regarding the Company’s business and financial results.  Specifically, the Complaint alleges that defendants made material misstatements and failed to disclose that it had engaged in deceptive student recruiting practices, as well as improper academic assessment practices in order to increase the Company’s student enrollment and revenues.  These material misrepresentations and omissions artificially inflated the price of the Company’s stock price throughout the Class Period.

When, on December 12, 2011, The New York Times reported that K12 had engaged in improper practices at its primary virtual charter schools, the price of the Company’s stock dropped $9.89, or more than 34%, per share on unusually heavy volume.  The Company’s stock price declined further in the following days as the market digested the news about K12’s improper practices, dropping from a closing price of $28.79 per share on December 12, 2011 to a closing price of $18.90 per share on December 16, 2011.

If you wish to serve as lead plaintiff, you must move the Court no later than April 2, 2012.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.