Lincoln Educational Services Corporation (LINC) Securities Class Action

The lawsuit is focused on the propriety of Lincoln Educational’s statements about its student starts, a metric that features prominently within the company’s financial reports.

On May 11, 2026, Lincoln Educational reported its Q1 2026 earnings and held its related investor call. Among other things, management emphasized “‘[t]he 19.5% student start growth during the first quarter exceeded our expectations, which has led to increasing our student start growth guidance for the full year to between 10% and 14%.”  During the related investor call, management emphasized “the continuing momentum in our business” and “strong, sustained demand” in the business.

The market reacted favorably to the news and narrative going forward, sending the price of Lincoln Educational shares up $4.75 (+10.6%) that day.

Investors’ expectations were dashed on August 10, 2026, when the company reported its Q2 2026 earnings and held its related investor call. Of significant concern was the revelation that student starts grew a paltry 1%, seemingly at odds with the “continuing momentum” and “strong, sustained demand” narrative conveyed just three months earlier. In addition, management said “[d]uring the first quarter of this year, we achieved student start growth of nearly 20%, and we expected second quarter start growth to moderate to approximately half this rate.”

This news drove the price of Lincoln Educational shares down $10.22 (-24.9%), wiping out over $300 million of the company’s market capitalization in a single day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LINC investigation about?

We are focused on whether Lincoln Educational may have intentionally misled investors about its student start metrics.

WHAT SHOULD I DO?

I worked at LINC. What should I do?

If you were an employee of LINC, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LINC, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LINC investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.