Several class actions have been filed against on-line education provider Apollo Group, Inc. (Nasdaq: APOL) parent company of the nation's oldest and best known distance learning institution, the University of Phoenix. The suit also names certain of Apollo's officers and directors. It is brought by stockholders who purchased the company's common stock between March 12, 2004 and September 14, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Apollo provides higher education to working adults through its subsidiaries, The University of Phoenix, Inc., University of Phoenix Online, Institute for Professional Development, The College for Financial Planning Institutes Corporation and Western International University, Inc. The Complaint alleges that Apollo and certain of its key officers violated securities laws by making misrepresentations in connection with its student recruiting practices. On September 15, 2004, the Wall Street Journal published an article entitled "Will Apollo's Bad Report Card Get Its Shares Grounded?" in which the author reported that Apollo sales personnel were rewarded for enrolling underqualified students, in violation of federal regulations. On this news, shares of Apollo fell $1.41 per share to close at $78.68 per share on September 15, 2004. At the time of this update Apollo stock has dropped still further, to $68.45 per share.

If you are a member of the class, you may, no later than December 13, 2004, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement.