On July 1, 2011, Investor’s Business Daily featured an article by Gary Stern discussing how San Diego-based Bridgepoint Education, Inc. (NYSE: BPI) has been affected by the scandal currently engulfing for-profit colleges. In his article, Mr. Stern explores how the company’s reputation has been affected by growing scrutiny from the Department of Education and various state agencies, despite Bridgepoint’s rapid growth over the past few years. In addition, several states’ attorneys general have recently turned their attention to the company’s practices. Mr. Stern cites Robbins Umeda LLP’s investigation into Bridgepoint as an example of this increased scrutiny. Robbins Umeda LLP points to a U.S. Senate Health, Education, Labor, and Pensions Committee case study, which revealed that while Bridgepoint gets 86% of its revenues directly from the federal government, the vast majority of its students drop out. Specifically, of the students who enrolled in 2008-2009, 84% in the associate degree programs and 63% in the bachelor’s programs dropped out by September 2010. Robbins Umeda LLP is investigating whether the officers and directors of Bridgepoint caused the company to violate government regulations and whether they exercised appropriate oversight of Bridgepoint in accordance with their fiduciary duties.
To learn more about Robbins Umeda LLP’s investigation for shareholders, click here.
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* The firm name changed from Robbins Umeda LLP to Robbins LLP on January 1, 2013.