Securities fraud investigation of K12

[funschooler5]

Is there a thread about this yet? Susan posted this link on Facebook.

 

http://finance.yahoo.com/news/faruqi-faruqi-llp-announces-investigation-000000902.html

[AlmiraGulch]

Great.

[LisaKinVA]

It's on the afterschooler's board.

 

Here is K12's reply regarding the "investigation"

 

First, there have been reports that our major investor Technology Crossover Ventures (TCV) sold 4 million shares of K12 stock representing the entire $125.8M investment it made in April 2011, and suggesting that TCV had a loss of confidence in the Company. That report was false. What actually happened is that on December 8th, K12 filed to publicly register with the SEC the shares of common stock it had sold to TCV in April in a private transaction. The timing of that registration filing had nothing to do with the New York Times article. Rather, in the stock purchase agreements that were signed in April, TCV originally requested K12 to register those shares within six months, but because our annual report was delayed, we did not file the registration statement until early December. Not only has the SEC not yet acted on the registration, TCV has sold none of its shares. Indeed, if it had, the securities laws require that it make public such a sale within 48 hours by filing a so-called Form 4 with the SEC, and none have been filed.

 

Second, I also wanted to address your concerns about a law firm press release alleging that K12 has violated the federal securities laws, and soliciting shareholders to act as a plaintiff. When the stock price of a publicly-traded company takes a steep drop in a short period of time, it is quite common to see these types of press releases by law firms soliciting potential clients. Stock price declines can often follow Company-initiated disclosures or events, such as an acquisition or an earnings report. What is unusual here is that this law firm issued a press release based on an article written by the New York Times, and not based on any statements made by the Company. In any event, there is no merit to the claims alleged by the law firm and should a lawsuit follow, the Company will respond accordingly.

 

 

Here is a LINK to the company's response to the original NYT article...

 

 

I'm going to go blow dry my hair, and get dressed. Have to leave :D Have at it all, folks!

[funschooler5]

It's on the afterschooler's board.

 

Here is K12's reply regarding the "investigation"

 

First, there have been reports that our major investor Technology Crossover Ventures (TCV) sold 4 million shares of K12 stock representing the entire $125.8M investment it made in April 2011, and suggesting that TCV had a loss of confidence in the Company. That report was false. What actually happened is that on December 8th, K12 filed to publicly register with the SEC the shares of common stock it had sold to TCV in April in a private transaction. The timing of that registration filing had nothing to do with the New York Times article. Rather, in the stock purchase agreements that were signed in April, TCV originally requested K12 to register those shares within six months, but because our annual report was delayed, we did not file the registration statement until early December. Not only has the SEC not yet acted on the registration, TCV has sold none of its shares. Indeed, if it had, the securities laws require that it make public such a sale within 48 hours by filing a so-called Form 4 with the SEC, and none have been filed.

 

Second, I also wanted to address your concerns about a law firm press release alleging that K12 has violated the federal securities laws, and soliciting shareholders to act as a plaintiff. When the stock price of a publicly-traded company takes a steep drop in a short period of time, it is quite common to see these types of press releases by law firms soliciting potential clients. Stock price declines can often follow Company-initiated disclosures or events, such as an acquisition or an earnings report. What is unusual here is that this law firm issued a press release based on an article written by the New York Times, and not based on any statements made by the Company. In any event, there is no merit to the claims alleged by the law firm and should a lawsuit follow, the Company will respond accordingly.

 

 

Here is a LINK to the company's response to the original NYT article...

 

 

I'm going to go blow dry my hair, and get dressed. Have to leave :D Have at it all, folks!

 

Thanks...I thought the NYT article was awfully one-sided. I've considered using K12 in the past (and we actually do use their history program) but the only reason we didn't was because of the nature of virtual academies themselves (less freedom for curric choices, etc.) not because of the actual K12 curric. It looks like a great program to me.