Judge Overturns Erroneous Jury Verdict, Resolves Case in Favor of
Apollo Group
Apollo Group, Inc. (Nasdaq:APOL) (“Apollo
Group,” “Apollo”
or the “Company”)
applauded yesterday’s District Court decision
in which Judge James A. Teilborg overturned the previous verdict that
had been rendered in the plaintiffs’ favor in
the securities litigation arising out of the 2003 program review by the
Department of Education. Notably, the Court found that an analyst’s
report on which the plaintiffs’ case heavily
relied was not a corrective disclosure.
Apollo Group called the ruling a vindication for its students, alumni,
employees and shareholders. P. Robert Moya, Senior Vice President,
General Counsel and Secretary for Apollo Group, Inc., said, “It
has always been Apollo Group’s position that
the plaintiffs in the case did not suffer any damages arising from the
disclosure of the initial government report and its unsubstantiated
allegations, and we are pleased that the Court has agreed.”
Wayne Smith, Partner with Gibson, Dunn & Crutcher and lead counsel for
Apollo Group, stated, “The Court’s
decision validates the arguments made by Apollo Group since the
beginning of this case, namely, that the ultimate disclosure of the
initial report’s contents caused no
significant movement in Apollo’s stock price.”
Any additional information on further motions by plaintiffs or Apollo
Group will be posted at the Apollo Legal Information Center at www.apollolegal.com.
Litigation Background
This case, Apollo Group Inc. Securities Litigation, was a
consolidated securities class action brought by the Policemen’s
Annuity and Benefit Fund of Chicago. It stemmed from allegations about
the non-disclosure of an initial government report about the manner in
which Apollo subsidiary University of Phoenix compensated its enrollment
counselors. The report’s allegations, which
were first raised in a False Claims Act lawsuit filed in 2003 by two
employees and then repeated with striking similarity in the initial
government report at issue, have been largely discredited in recent
years.
The case was tried in Federal District Court in Arizona beginning
November 14, 2007. The jury found in favor of the plaintiffs on January
16, 2008 and the plaintiff class was awarded damages of up to $5.55 per
share. Today’s ruling overturns the jury
verdict.
More information on the case may be found in Apollo’s
Legal Information Center at www.apollolegal.com.
About Apollo Group, Inc.
Apollo Group, Inc. has been an education provider for more than 30
years, providing academic access and opportunity to students through its
subsidiaries, University of Phoenix, Institute for Professional
Development, College for Financial Planning, Western International
University, Meritus University, Insight Schools and Apollo Global. It
also owns Aptimus, a provider of innovative digital media solutions. The
Company’s distinctive educational programs
and services are provided at the high school, college and graduate
levels in 40 states (as of May 31, 2008) and the District of Columbia;
Puerto Rico; Alberta and British Columbia, Canada; Mexico; Chile; and
the Netherlands, as well as online, throughout the world.
For Apollo Group, Inc.
Allyson Pooley, 312-660-2025 (Investor
Relations)
allyson.pooley@apollogrp.edu
Liliana
Esposito, 917-941-4225 (Media)
lesposito@mercuryllc.com
