Judge Overturns Erroneous Jury Verdict, Resolves Case in Favor of
Apollo Group
PHOENIX--(BUSINESS WIRE)--Aug. 5, 2008--Apollo Group, Inc.
(Nasdaq:APOL) ("Apollo Group," "Apollo" or the "Company") applauded
yesterday's District Court decision in which Judge James A. Teilborg
overturned the previous verdict that had been rendered in the
plaintiffs' favor in the securities litigation arising out of the 2003
program review by the Department of Education. Notably, the Court
found that an analyst's report on which the plaintiffs' case heavily
relied was not a corrective disclosure.
Apollo Group called the ruling a vindication for its students,
alumni, employees and shareholders. P. Robert Moya, Senior Vice
President, General Counsel and Secretary for Apollo Group, Inc., said,
"It has always been Apollo Group's position that the plaintiffs in the
case did not suffer any damages arising from the disclosure of the
initial government report and its unsubstantiated allegations, and we
are pleased that the Court has agreed."
Wayne Smith, Partner with Gibson, Dunn & Crutcher and lead counsel
for Apollo Group, stated, "The Court's decision validates the
arguments made by Apollo Group since the beginning of this case,
namely, that the ultimate disclosure of the initial report's contents
caused no significant movement in Apollo's stock price."
Any additional information on further motions by plaintiffs or
Apollo Group will be posted at the Apollo Legal Information Center at
www.apollolegal.com.
Litigation Background
This case, Apollo Group Inc. Securities Litigation, was a
consolidated securities class action brought by the Policemen's
Annuity and Benefit Fund of Chicago. It stemmed from allegations about
the non-disclosure of an initial government report about the manner in
which Apollo subsidiary University of Phoenix compensated its
enrollment counselors. The report's allegations, which were first
raised in a False Claims Act lawsuit filed in 2003 by two employees
and then repeated with striking similarity in the initial government
report at issue, have been largely discredited in recent years.
The case was tried in Federal District Court in Arizona beginning
November 14, 2007. The jury found in favor of the plaintiffs on
January 16, 2008 and the plaintiff class was awarded damages of up to
$5.55 per share. Today's ruling overturns the jury verdict.
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 subsidiaries, University of Phoenix, Institute for Professional
Development, College for Financial Planning, Western International
University, Meritus 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 in 40 states
(as of May 31, 2008) and the District of Columbia; Puerto Rico;
Alberta and British Columbia, Canada; Mexico; Chile; and the
Netherlands, as well as online, throughout the world.
CONTACT: For Apollo Group, Inc.
Allyson Pooley, 312-660-2025 (Investor Relations)
allyson.pooley@apollogrp.edu
Liliana Esposito, 917-941-4225 (Media)
lesposito@mercuryllc.com
SOURCE: Apollo Group, Inc.
