Lincoln Educational Services (LINC) faces a class action lawsuit alleging the company inflated student growth metrics and withheld critical data regarding student attendance and loan repayment challenges.
Lincoln Educational Services is facing a securities class action lawsuit alleging that the company misled investors by reporting a 19.5% growth in student starts and raising full-year guidance. The complaint suggests these figures were inflated by failing to disclose that enrolled students were failing to attend classes and that the resumption of federal student loan repayment obligations was negatively impacting the student base.
The company is accused of inflating student start growth figures and raising guidance while failing to disclose poor student attendance and the adverse effects of resumed federal loan repayments.
The lawsuit challenges the reported 19.5% student start growth figure.
Lincoln Educational Services faces a securities class action lawsuit alleging the company misled investors regarding student enrollment figures. The complaint claims management touted 19.5% growth while failing to disclose that many students had ceased attending classes and were struggling with resumed federal loan obligations.
The class action lawsuit alleges that the company made misleading statements in SEC filings by reporting 19.5% student growth while omitting that many students had stopped attending classes and were facing difficulties with federal loan repayments.