Education Management Corporation (EDMC) (NASDAQ:EDMC) Legal Troubles Continue
Posted on Monday, April 15, 2013
PRESS RELEASE
http://www.sbwire.com/press-releases/print/236572
EDMC (NASDAQ:EDMC) is embroiled in a multibillion dollar fraud case brought by the Department of Justice (DOJ); several employee whistleblower suits; a recent investigation by the Securities and Exchange Commission (SEC); and now a unfair labor charge filed with the National Labor Relations Board (NLRB).
Sylvester, GA — (SBWIRE) — 04/15/2013 — Education Management Corporation (EDMC) (NASDAQ:EDMC), the nation’s second largest provider of for-profit education, is under investigation by the National Labor Relations Board (NLRB) as a result of charges that the company discriminated against employees for union organizing efforts, enforced illegal company policies and engaged in a number of other unfair labor practices.
A number of current and former EDMC (http://www.edmc.edu/) employees allege that EDMC engaged in unfair labor practices and policies that violated federal labor laws and the National Labor Relations Act (NLRA). The employees filed charges with the NLRB against EDMC and the Art Institute of California. According to the charges, EDMC routinely subjected employees to harassment for requesting and taking entitled sick leave, maternity leave and vacation time. In addition, certain employees complained of being harassed over taking legally entitled rest breaks and properly recording work hours that resulted in overtime pay.
Employees were said to have also complained of questionable compliance practices and being pressured to break rules and enroll unqualified students in order to meet hyper aggressive revenue goals. After complaining of untenable work conditions, reporting the abuses to senior management and engaging in efforts to organize a labor union, the employees say they faced retaliatory discipline, reduced work privileges, poor performance reviews and termination in some cases. If the allegations are true, EDMC violated employees Section 7 rights under the NLRA which gives both union and non-union employees the right to engage in concerted activities such as discussing work conditions and acting together to resolve work related issues.
The latest NLRB controversy is just one of many charges and lawsuits currently pending against EDMC, which is owned by Goldman Sachs (41%). Both EDMC stock price and its student enrollment numbers have been severely impacted by its negative publicity. On March 12, 2013, NASDAQ:EDMC stock shares closed at $4.627 per share, which is significantly below its current 52 week High of $16.16 per share. The company is engaged in a multi-billion dollar fraud suit commenced by the Department of Justice (DOJ) under the False Claims Act (FCA) that is currently pending. It also faces a shareholder derivative suit brought by the Oklahoma Law Enforcement Retirement Systems (OLERS) and scrutiny by the Securities and Exchange Commission (SEC). EDMC recently announced an SEC investigation few weeks ago and also has additional pending whistleblower suits under the FCA, Sarbanes-Oxley (S0X), the Dodd-Frank Act and the SEC Whistleblower Bounty Program.
EDMC employees who have additional information regarding questionable company practices or would like to learn more about ongoing employees claims, or who may have questions concerning EDMC employee rights or upcoming union organizing activities, please contact Ted Sadler at projectlogicga.com
Media Relations Contact
Ted Sadler or Helen Blocker
helen@hbagroup-intl.com Contact HBAGroup
http://www.helenblockeradams.com/
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Education Management Corporation: Legal Troubles
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