Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Apollo Education Group, Inc. (“Apollo Education” or the “Company”) (Nasdaq:APOL) in the United States District Court for the District of Arizona on behalf of a class consisting of all persons or entities who purchased Apollo Education securities between June 26, 2013 and October 21, 2015, 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”).The Complaint alleges that Defendants failed to disclose that a significant amount of revenue was generated through improper and aggressive recruiting tactics at U.S. military bases in violation of the Executive Order President Barack Obama signed on April 27, 2012.

The Complaint alleges that as a result of Defendants’ false statements during the Class Period, which emphasized Apollo’s financial success and bright financial prospects, the price of Apollo’s common stock allegedly traded at artificially inflated levels, reaching a Class Period high of $35.92 per share in intraday trading on January 22, 2014.  With the price of the stock artificially inflated, the Complaint alleges that certain of Apollo’s senior executives sold their personal stock into the market at the artificially inflated prices, reaping almost $42 million in total proceeds.

On February 5, 2016, Apollo disclosed that it had received a second subpoena from the California attorney general’s office, demanding documents “relating to marketing, recruiting, compensation of enrollment advisors, complaints, financial aid, compliance, accreditation, other governmental investigations, private litigation and other matters, as well as additional information relating to marketing and services to members and former members of the U.S. military and California National Guard” going back to July 1, 2010.  In July 2015, the U.S. Federal Trade Commission also required the Company to produce documents concerning its business practices.

Apollo’s stock has fallen in the twelve months from over $28 per share to today’s closing price of $8.28.