The Utah Retirement Systems, represented by Labaton Sucharow, defeated a motion to dismiss in a securities class action lawsuit against DeVry Education Group (“DeVry”). The case includes allegations that DeVry, which provides education services globally through various subsidiaries, including DeVry University, one of the largest postsecondary educational institutions in the United States, issued misleading statements to investors about employment and salary statistics for DeVry University graduates, inflating the value of its stock price.
On December 20, 2018, Judge Jorge L. Alonso of the U.S. District Court for the Northern District of Illinois denied DeVry’s motion to dismiss the suit. After the court dismissed the Second Amended Complaint in December 2017 for failing to adequately allege scienter, the Firm filed a Third Amended Complaint on January 29, 2018. This complaint included additional allegations based on documents plaintiffs obtained from government entities through the Freedom of Information Act, and allegations from 13 new confidential witnesses who worked for DeVry. In denying the motion to dismiss, the court concluded that the “additional allegations…alter the alleged picture with respect to scienter.”
The case is Pension Trust Fund for Operating Engineers v. DeVry Education Group, Inc. (N.D. Ill.). The Labaton Sucharow team includes partners Carol Villegas, Jonathan Gardner and Mark Willis and associate Ted Hawkins.