PHOENIX--(BUSINESS WIRE)--Jan. 16, 2008--Apollo Group, Inc.
(Nasdaq:APOL) is disappointed in the decision returned today by a
Phoenix jury in a consolidated securities class action brought by the
Policemen's Annuity and Benefit Fund of Chicago. The case, tried in
federal district court in Arizona, was premised on Apollo's supposed
failure to disclose unsubstantiated allegations from a preliminary
government report.
"We disagree with the jury's verdict, both the finding and the
amount of damages," said Wayne W. Smith of Gibson Dunn & Crutcher LLP,
counsel to Apollo. "The law does not require the disclosure of
preliminary or unproven charges in a government investigation. In not
disclosing the 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."
Importantly, the ultimate disclosure of the report's contents
caused no statistically significant movement in Apollo's stock price.
The plaintiff in the case did not suffer any damages; there simply was
no loss associated with 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 is evaluating options for appeal.
United States District Judge James A. Teilborg presided over the
case. In addition to Mr. Smith, Apollo was represented by: Joseph P.
Busch III and Jared M. Toffer of Gibson Dunn & Crutcher LLP; and David
R. Rosenbaum of Osborn Maledon, P.A.
More information on the case may be found in Apollo's Legal
Information Center at www.apollolegal.com.
About Apollo Group, Inc.
Apollo Group, Inc. has been an education provider for more than 30
years, providing academic access and opportunity to students through
its University of Phoenix, Institute for Professional Development,
College for Financial Planning, Western International University,
Insight Schools and Apollo Global. It also owns Aptimus, a provider of
innovative digital media solutions. The Company's distinctive
educational programs and services are provided at the high school,
college and graduate levels at 259 locations in 40 states and the
District of Columbia; Puerto Rico; Alberta and British Columbia,
Canada; Mexico and the Netherlands, as well as online, throughout the
world.
For more information about Apollo Group, Inc. and its
subsidiaries, call (800) 990-APOL or visit Apollo on the company
website at: www.apollogrp.edu.
CONTACT: Apollo Group, Inc.
Investor Relations
Allyson Pooley, 312-660-2025,
allyson.pooley@apollogrp.edu
Janess Pasinski, 480-557-1719,
janess.pasinski@apollogrp.edu
or
Mercury Public Affairs, LLC
Media
Sara Jones, 818-326-1871,
sjones@mercuryllc.com
SOURCE: Apollo Group, Inc.
