Adtalem Global Education (ATGE) Stock Tanks After Short Seller Accuses ATGE of Inflating Asset Values and Concealing Government Investigation - Hagens Berman
SAN FRANCISCO - Hagens Berman urges Adtalem Global Education Inc. (NYSE: ATGE) investors who suffered substantial losses to submit your losses now.
Contact An Attorney Now: ATGE@hbsslaw.com, 844-916-0895
Adtalem Global Education Inc. (NYSE: ATGE) Investigation:
“We’re investigating whether Adtalem may be misleading investors about the values of certain assets carried on its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
The investigation comes after activist short seller Safkhet Capital published a scathing report on Jan. 30, 2024 concluding that Adtalem is completely uninvestable and reportedly said “‘the number of existential risks that exists today should cause alarm for any investor that’s looking into this company.’”
Among other things, Safkhet alleged that Adtalem should impair its $1.48 billion Walden acquisition, which was booked as $833 million intangible assets and $651 million goodwill. Safkhet called for further review by Adtalem’s auditors into the Walden valuation, whose 33-year tenure might “result in either auditor negligence or willful blindness.” In support, Safkhet highlighted “material risks to Walden’s eligibility to receive federal student aid, which will affect its ability to operate[,]” and revealed that the U.S. Department of Education launched an investigation into Walden related to the institution’s doctoral programs.
On this news, the price of Adtalem shares declined sharply.
Whistleblowers: Persons with non-public information regarding Adtalem should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email ATGE@hbsslaw.com.
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