INVESTOR UPDATE: MURRAY, FRANK & SAILER LLP ANNOUNCES EXTENDED CLASS PERIOD IN LAWSUIT AGAINST CORINTHIAN COLLEGES, INC. - COCO
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New York, NY (PrimeZone) August 4, 2004: Murray, Frank & Sailer LLP announces that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all shareholders who purchased or acquired the common stock of Corinthian Colleges, Inc. (NASDAQ: COCO; "Corinthian" or the "Company") between August 27, 2003 through July 30, 2004, inclusive (the "Class Period").
The complaint alleges that Corinthian, David Moore, Anthony Digiovanni, and Dennis Beal violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between August 27, 2003 through July 30, 2004. More specifically, Corinthian reported record fourth quarter revenues of $138.9 million, record fourth quarter diluted earnings per share of $0.39, and record results for its fiscal year ended June 30, 2003. For its 2003 fiscal year that ended on June 30, 2003, Corinthian posted record revenues of $517.3 million, 53% higher than fiscal 2002 revenues of $338.1 million. In the fourth quarter of fiscal 2003, Corinthian's revenues rose 47% to a record $138.9 million, up from $94.6 million in the corresponding year-earlier period.
Moreover, Corinthian reported record revenues and set new records in net income, operating profits and student population for the second quarter and six-month year-to-date period ended December 31, 2003. Revenues for the second quarter rose 57.8% to $200.6 million, compared with revenues of $127.2 million posted in the second quarter of the previous year. For the six-month period, revenues increased 52.3% to $369.8 million, up from $242.8 million for the comparable period the previous year. Net income for the second quarter advanced 35.9% to $21.9 million, or $0.47 per diluted share, up from $16.1 million, or $0.35 per diluted share, in the second quarter a year ago. Net income for the first half of fiscal 2004 rose 38.3% to $41.3 million, or $0.88 per diluted share, compared with $29.9 million, or $0.65 per diluted share, for the same period last year.
On June 24, 2004, THE FINANCIAL TIMES reported, in a story entitled "College Fee Probe Extends to Corinthian," that a division of the US Department of Education ("USDE") had uncovered violations in obtaining federal loans at Corinthian's Bryman College campus, in San Jose, California. Consequently, USDE revoked the school's ability to receive advance payments on its student loans. The price of Corinthian Colleges' shares fell $2.55, or 10.18 percent, as a result of the news, closing at $22.51.
On August 2, 2004, before the market opened for trading, Corinthian announced that its preliminary operating results for the 2004 fourth quarter and 2004 fiscal year, as well as expectations for the 2005 fiscal year, were expected to fall below previous guidance. The pre-market announcement resulted in the stock opening down $7.46 from its previous close of $18.72, or 39%; Corinthian traded as low as $9.99 in intraday trading, which represents a 47.9% decline.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Corinthian Colleges, Inc. between August 27, 2003 through July 30, 2004, inclusive, and sustained damages, you may, no later than September 6, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]