Get Cash Back and $0 Commissions + The Power of TradeStation
Adtalem Global Education (ATGE) Stock Tanks After Short Seller Accuses ATGE of Inflating Asset Values and Concealing Government Investigation - Hagens Berman
Globe Newswire 30-Jan-2024 7:30 PM
SAN FRANCISCO, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Adtalem Global Education Inc. (NYSE:ATGE) investors who suffered substantial losses to submit your losses now.
Adtalem Global Education Inc. (NYSE:ATGE) Investigation:
"We're investigating whether Adtalem may be misleading investors about the values of certain assets carried on its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
The investigation comes after activist short seller Safkhet Capital published a scathing report on Jan. 30, 2024 concluding that Adtalem is completely uninvestable and reportedly said "‘the number of existential risks that exists today should cause alarm for any investor that's looking into this company.'"
Among other things, Safkhet alleged that Adtalem should impair its $1.48 billion Walden acquisition, which was booked as $833 million intangible assets and $651 million goodwill. Safkhet called for further review by Adtalem's auditors into the Walden valuation, whose 33-year tenure might "result in either auditor negligence or willful blindness." In support, Safkhet highlighted "material risks to Walden's eligibility to receive federal student aid, which will affect its ability to operate[,]" and revealed that the U.S. Department of Education launched an investigation into Walden related to the institution's doctoral programs.
On this news, the price of Adtalem shares declined sharply.
If you invested in Adtalem and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Adtalem investigation, read more »
Whistleblowers: Persons with non-public information regarding Adtalem should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ATGE@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
