Grand Canyon Education $25.5M Class Action Settlement

Will Gendron
Editor in Chief
Published
June 30, 2024 11:47 PM
Updated
July 24, 2024
Grand Canyon Education $25.5M Class Action Settlement
Settlement Open for Claims
Award:
$0.69 per share
Deadline:
September 19, 2024
SUBMIT CLAIM

Grand Canyon Education, Inc. has agreed to pay $25,500,000 to settle a class action lawsuit for alleged false and misleading statements regarding the 2018 sale of Grand Canyon University to an Arizona nonprofit corporation. This settlement aims to compensate those who purchased Grand Canyon common stock during the specified period and were financially harmed as a result.

Can I Claim an Award?

To be considered a class member, you must meet the following criteria:

  • You purchased Grand Canyon common stock during the class period.
  • You experienced financial losses due to the alleged false and misleading statements made by Grand Canyon Education, Inc.

The class period is defined as the time between January 5, 2018, and January 27, 2020. If you bought Grand Canyon common stock during this period and suffered financial losses, you are eligible to file a claim to receive a portion of the settlement fund.

What Awards Can Class Members Claim?

The settlement fund of $25,500,000 will be distributed among eligible class members who submit valid claims. The amount each class member receives will depend on the number of shares purchased and the financial losses incurred.

The calculation of the award is based on the difference between the purchase price of the shares and the price at which they were sold or held after corrective information was released. The recognized loss amount will be calculated as follows:

  • For shares sold before November 6, 2019: The recognized loss amount is $0.00.
  • For shares sold from November 7, 2019, to January 27, 2020: The recognized loss amount is the lesser of the artificial inflation per share on the purchase date minus the artificial inflation per share on the sale date or the purchase price minus the sale price.
  • For shares sold from January 28, 2020, to April 24, 2020: The recognized loss amount is the least of the artificial inflation per share on the purchase date, the purchase price minus the average closing price from January 28, 2020, to the sale date, or the purchase price minus the sale price.
  • For shares held as of April 24, 2020: The recognized loss amount is the lesser of the artificial inflation per share on the purchase date or the purchase price minus $76.90.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim an award. Claimants must provide documentation of their transactions in Grand Canyon common stock during the class period. This includes:

  • Brokerage confirmation slips or monthly brokerage account statements.
  • An authorized statement from the broker containing transactional and holding information.

How to Claim Your Award

To claim your award, you must complete and submit a claim form with the required documentation. You can file a claim online by visiting file a claim online or by mailing your completed form to the claims administrator.

Ensure your claim form is postmarked or submitted online no later than September 19, 2024. Late submissions will not be considered.

$25,500,000 Settlement Fund Breakdown

The total settlement amount is $25,500,000. This fund will be used to compensate eligible class members, cover attorneys' fees, litigation expenses, notice and administration costs, and any applicable taxes.

Lead counsel will apply for attorneys' fees not to exceed 23% of the settlement fund, and litigation expenses not to exceed $600,000. The remaining amount will be distributed among the class members who submit valid claims.

Important Dates

  • Fairness Hearing: August 22, 2024, at 11:00 a.m.
  • Deadline to File a Claim: September 19, 2024

Why is There a Class Action Settlement?

The class action settlement addresses allegations that Grand Canyon Education, Inc. made false and misleading statements regarding the sale of Grand Canyon University. These statements allegedly inflated the price of Grand Canyon common stock, causing financial harm to investors when the truth was revealed.

The settlement provides a substantial immediate cash benefit to the settlement class without the risks and delays associated with further litigation. By settling, the defendants do not admit any wrongdoing but aim to avoid the burden and expense of continued legal proceedings.

Notice Letter

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Status
Open for Claims
Settlement Amount
$25,500,000
Award
$0.69 per share
Is Proof Required?
Proof Required
Proof Required
Days Remaining to file Claim
57
Claim Deadline
September 19, 2024
Fairness Hearing
August 22, 2024
Final Approval Hearing
August 22, 2024
Case Number
20-639-JLH-CJB
Case Title
In re Grand Canyon Education, Inc. Securities Litigation
State
Court
Jurisdiction
Claims Administrator
JND Legal Administration P.O. Box 91065 Seattle, WA 98111 855-208-4129 info@GrandCanyonSecuritiesLitigation.com
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