Harwood Feffer LLP Announces That A Securities Class Action Lawsuit Has Been Filed Against Bridgepoint Education, Inc.

NEW YORK, Feb. 25, 2015 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) announces that a class action suit was filed in the United States District Court for the Southern District of California (Case No. 3:15-cv-00408) against Bridgepoint Education, Inc. ("BPI" or the "Company") (NYSE: BPI) and certain of its officers on behalf of all purchasers of BPI common stock between August 7, 2012 and May 30, 1014 (the "Class Period") for violations of the federal securities laws by disseminating false and misleading statements to the investing public.

On May 12, 2014, BPI revealed that it was unable to timely file its Quarterly Report for the 2014 fiscal first quarter because the Securities and Exchange Commission ("SEC") had informed BPI that a reassessment of its revenue recognition policy was necessary. According to BPI, the SEC had been requiring that BPI reassess whether collectability was reasonably assured on a student-by-student basis when recognizing revenue after a student's initial enrollment upon certain changes in circumstances, such as when a student loses financial aid eligibility.  Following this news, shares of BPI declined nearly 9 percent, to close on May 12, 2014, at $14.51 per share, on unusually heavy volume.

On May 30, 2014, BPI announced that its financial statements filed with the SEC for the years ended December 31, 2011 and December 31, 2012, as well as the financial statements issued for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, should no longer be relied upon.  According to BPI, these financial statements contained errors related to revenue recognition that resulted in material misstatements of revenue, bad debt expense, and accounts receivable.

The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) BPI had applied an improper revenue recognition methodology to assess collectability of funds owed by students; (2) as a result, BPI's revenues and financial results were overstated; (3) BPI's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) BPI lacked adequate internal and financial controls; and (5), as a result of the foregoing, BPI's financial statements were materially false and misleading at all relevant times.

If you purchased BPI shares between August 7, 2012 and May 30, 2014, you may, no later than April 27, 2015, request that the Court appoint you lead plaintiff.  If you own BPI shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:

Robert I. Harwood, Esq.
James G. Flynn, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers:
(877) 935-7400
(212)935-7400
Email:  jflynn@hfesq.com
Website: http://www.hfesq.com

Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.

Attorney Advertising. © 2015 Harwood Feffer LLP. The law firm responsible for this advertisement is Harwood Feffer LLP (www.hfesq.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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SOURCE Harwood Feffer LLP