Grand Canyon Education, Inc. (NASDAQ: LOPE)

A class action lawsuit has been filed on behalf of investors who purchased Grand Canyon Education, Inc. (NASDAQ: LOPE) stock. The lawsuit alleges that certain executive officers fraudulently inflated Grand Canyon’s financial results by using Grand Canyon University (“GCU”) as an off-balance-sheet entity through which executives were able to funnel expenses and costs while claiming a disproportionate amount of revenue. When the truth emerged, it caused the company’s stock price to fall significantly. The lawsuit seeks to recover monetary damages on behalf of Grand Canyon investors, with all litigation costs and expenses covered by Murphy Law Firm.
Investor Information

The lawsuit alleges that defendants made materially false and misleading statements to investors, describing GCU as a “non-profit” and “independent” institution while misrepresenting Grand Canyon’s role as nothing more than a third-party provider of education services. In truth, according to the lawsuit, Grand Canyon controls and effectively operates GCU, with Grand Canyon employees covertly serving as executives of GCU. Specifically, the lawsuit alleges that defendants materially failed to disclose to investors that: (1) GCU would not be and is not a proper non-profit organization as it remains under the control of Grand Canyon; (2) Grand Canyon would not be a third-party service provider to GCU but rather would and does continue to effectively operate the entity; (3) Grand Canyon employees served as executives of GCU; and (4) GCU functions as an off-balance-sheet entity to which Grand Canyon is able to funnel expenses and costs in exchange for a disproportionate amount of revenue, thereby inflating Grand Canyon’s financial results. When the true details were revealed to the market, the price of Grand Canyon stock fell significantly, causing substantial losses for investors.

To join the lawsuit, please provide your information above, or to discuss your rights regarding this class action, please contact A. Brooke Murphy, Esq. at or (405) 389-4989.