Oregon Sues U. of Phoenix

October 19, 2010

Oregon is seeking to become the lead plaintiff in a class action, securities fraud lawsuit against Apollo Group, the parent company of University of Phoenix. The suit charges that the university misled investors by not accounting for student withdrawals from courses, withdrawals that when exposed caused Apollo stock to drop -- causing a loss of about $10 million to Oregon's state retirement system, the suit charges. A statement from Ted Wheeler, Oregon's treasurer, said: "With this lawsuit, we hope to teach a lesson that businesses like the University of Phoenix cannot take advantage of their students or their investors." Manny Rivera, a spokesman for the company, told The Oregonian that "Apollo Group takes its disclosure obligations very seriously and intends to defend this lawsuit vigorously."

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