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Firm Running Del. Charter School Accused Of Fraud
Updated: Monday, 06 Feb 2012, 1:27 PM EST
Published : Monday, 06 Feb 2012, 1:27 PM EST
DOVER, Del. - A private for-profit company hired by state officials to run the troubled Moyer Academy charter school in Wilmington is the target of a lawsuit alleging federal securities fraud.
A lawsuit filed in Virginia alleges that officials with Virginia-based K12 Inc. made false and misleading statements regarding the company's business and financial results in order to inflate K12's stock price.
The complaint was filed last week on behalf of investors who bought K12 stock between 2009 and last year. It alleges among other things that K12 used deceptive student recruiting practices and improper academic assessments to increase its student enrollment and revenues.
A spokesman said K12 disputes the allegations and will vigorously defend itself. A spokeswoman for Delaware education secretary Lillian Lowery say Lowery hasn't seen the filing and can't comment.