Bridgepoint Education, Inc. (BPI) Misstated Financial Statements
According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between March 8, 2016 and March 7, 2019, Bridgepoint Education, Inc. (BPI) announced on March 7, 2019 that it had “determined to reinstate the Company’s previously issued unaudited condensed consolidated financial statements, and advised that those financial statements should not be relied upon, for the three and nine months ended September 30, 2018.” Bridgepoint stated that the processes used for recording revenue for the FTG program portion of its student contracts “were not designed with sufficient precision,” leading to “material” accounting errors related to revenue, provision for bad debts, accounts receivable and deferred revenue, which resulted in the overstatement of revenue and expenses. The company also identified material weaknesses in controls. On this news, Bridgepoint’s stock declined over 34% per share, to close at $6.22 per share on March 7, 2019.
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