Lack Of Cogent Scienter Allegations Dooms Shareholder Claims

Mealey's (August 10, 2021, 2:27 PM EDT) -- WILMINGTON, Del. — A federal magistrate judge on Aug. 9 recommended that lead plaintiffs’ federal securities law claims against a for-profit higher education provider and two of its senior executives be dismissed because the lead plaintiffs have failed to sufficiently plead that the defendants acted with the requisite scienter in allegedly misrepresenting to investors that the U.S. Department of Education (DOE) would grant the provider nonprofit status to its for-profit university....