Securities Fraud Class Action Filed Against Lincoln Educational Services
A securities class action lawsuit has been filed against Lincoln Educational Services. The allegations concern the company's reported student start metrics, which caused a significant drop in the stock price.
A securities class action lawsuit has been filed against Lincoln Educational Services Corporation (NASDAQ: LINC), seeking to represent investors who purchased or acquired the company's securities between May 11, 2026, and August 9, 2026.
The suit stems from the company's August 10, 2026, announcement of its second-quarter 2026 results. The report revealed a slower-than-expected student starts metric, which led to a significant stock price decline of $10.22, or 24.9 percent.
The lawsuit alleges that Lincoln Educational's management made misleading statements regarding the company's student start metrics and the "continuing momentum" in its business. Notably, in May 2026, the company had projected full-year student start growth of 10% to 14%, exceeding its first quarter's 19.5% growth. However, the second-quarter figures released in August indicated only 1% growth.
National shareholder rights firm Hagens Berman is investigating these claims, alleging that Lincoln Educational may have violated securities laws. Investors who experienced substantial losses are encouraged to contact the firm before the lead plaintiff deadline of November 10, 2026.