Ohio– DeVry Education Group Inc (NYSE:DV) can have a weak opening on Monday. DeVry admits itself being investigated by U.S Attorney for Ohio’s Northern District under False Claims Act.
The for-profit education company has faced allegations, many of which fall under the False Claims Act and it could potentially hamper their stocks in the market. However, it was found that the sticks were still pretty much inactive in the premarket trade. Nevertheless, the education group did witness a decline, amounting as much as 0.8% of its stock in the after-hours of trade on Friday.
According to the report, DeVry is being accused by the U.S Attorney for offering an associate degree program in health information and technology. But before providing, the education group had not provided the vital information needed regarding the requirements for obtaining the degree. It also had not provided any information about the job in the field, which one could pursue for upon graduating from the program.
It should not be forgotten that a similar false claims suit was filed against DeVry earlier also. However, the matter was settled in March 2010 for an amount of $4.9 million. This was pointed out by Jeffrey Silber, an analyst at BMO Capital Markets.
Silber believes that the disclosure could potentially “put pressure” upon stocks of DeVry on Monday. He also expects that the management will “address the issue” when DeVry shall release their report about its earnings, which is expected to release this Thursday.
Stocks of DeVry witnessed a 24% tumble year to date. During the same time, the S&P 500 had gained about 1.1%.
DeVry Education Group Inc (NYSE:DV) is a group of institutions, which provide a range of educational programs on business, technology and healthcare as well. Several institutions such as American University of the Caribbean School of Medicine, Becker Professional Education, Carrington College California and many others are owned by the DeVry Education Group.
