Bush Financial Backer K12 Inc Faces Class Action Suit For Making False Statements to Investors
Fraudulent activity is creeping closer to former Florida governor, turned ed reform rock star Jeb Bush. Among his foundation’s backers is virtual school giant, K12 Inc. An investigation by a securities firm has resulted in the filling of a class action suit in federal court. From the Washington Post:
A shareholder in Virginia-based K12 Inc. has filed a lawsuit against the virtual-schools operator in federal court, alleging that the firm violated securities law by making false statements to investors about students’ poor performance on standardized tests.
The class-action complaint, filed Monday in U.S. District Court in Alexandria, also accuses K12 of boosting its enrollment and revenues through “deceptive recruiting” practices.