What’s Going on with Laureate Education?
Laureate Education (LAUR) has received good news from the United States Department of Justice (DOJ) regarding a civil qui tam action, which is an action that a private party or “relator” brings against an entity believed to be in breach of government contracts or regulations. The suit brought against Walden University and Laureate Education will not be investigated further. In pre-market activity, LAUR was up 6.57%, trading at $12.65 a share.
What Does This Mean for LAUR?
Laureate Education has effectively dogged a bullet with the DOJ’s announcement that it “had filed a Notice of Election to Decline Intervention with respect to a civil qui tam action filed by third-party relators against Walden University and the Company [Laureate Education].” Furthermore, the DOJ stated that its “investigation into this matter has now concluded.”
In effect, this means the Department of Justice won’t pursue the civil suit. The action involved an investigation into Walden University's nursing program and the possibility that students had been misled about the costs and substance of the course. Now that the DOJ has concluded its investigation in Laureate Education’s favor, investors can breathe a sigh of relief — although Walden University will continue to pursue the removal of the public “Governmental Investigation” designation assigned to it by the DOJ.
LAUR has an Overall Score of 38. Find out what this means to you and get the rest of the rankings on LAUR!
Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico. The company derives a majority of revenue from the Mexico segment.
