BREAKING NEWS: Judge Overturns Erroneous Jury Verdict -- On August 4, 2008, District Court Judge James A. Teilborg ruled in favor of Apollo Group on its post-trial motion for judgment as a matter of law, overturning the previous jury verdict of January 16, 2008. Click here for the Court’s Order. Click here for Apollo Group’s press release.
Case Summary
On January 16, 2008, a Phoenix jury found in favor of the plaintiffs in this case, which was premised on Apollo Group, Inc.’s decision not to disclose unsubstantiated allegations from an initial government report. Apollo disagrees with the jury’s verdict, both the finding and the method of calculating damages. Apollo believes that applicable law does not require the disclosure of preliminary or unproven charges in a government investigation under the circumstances present in this case. Furthermore, in not disclosing the initial report at issue, Apollo acted in good faith and in the best interests of its students, alumni, employees and shareholders, who could have been unfairly harmed by a premature disclosure.
The ultimate disclosure of the initial report’s contents caused no significant movement in Apollo’s stock price; the decline in Apollo’s stock price that plaintiffs relied on occurred seven days after the disclosure, following an analyst downgrade. Accordingly, it is Apollo’s position that the plaintiffs in the case did not suffer any damages arising from the disclosure of the initial report and its unsubstantiated allegations.
During trial, Apollo presented evidence demonstrating that the Company acted responsibly, consulted with professional advisors as appropriate, and at all times communicated truthfully to the market. Apollo has filed post-trial motions with the trial court seeking to reverse or modify the jury verdict and, if unsuccessful on the motions, will evaluate its options for an appeal.
For an overview of Apollo’s post-trial motions, click here.
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