Skip to main content

K12 Inc. Sued Over For-Profit Education Company’s Tax-Subsidized Funding Manipulation


This piece comes to us courtesy of a partnership between WHYY/NewsWorks and the Philadelphia Public School Notebook.
Dozens of former employees claim that K12 Inc, a for-profit education company, used dubious and sometimes fraudulent tactics to mask astronomical rates of student turnover in its national network of cyber charter schools.
K12 manages Agora, the second largest cyber charter in Pennsylvania. The company is also involved in pending applications to open two new cybers in the state. The Pennsylvania Department of Education is expected to decide on the proposals later this month.
The former employees allege that K12-managed schools aggressively recruited children who were ill-suited for the company’s model of online education. They say the schools then manipulated enrollment, attendance and performance data to maximize tax-subsidized per-pupil funding.
These claims by anonymous “confidential witnesses” are spelled out in court documents filed last June as part of a class-action lawsuit by the company’s investors.
ALLEGATIONS TOUCH UPON AGORA
Many of the allegations come from people who worked for the Agora Cyber Charter School, based in Wayne, Pa. With more than 8,000 students, Agora enrolls roughly a quarter of the 32,000 Pennsylvania students that have opted to attend cybers, which are independently managed schools providing mostly online instruction.
The class action suit against K12, Inc. and its executives was filed last January, shortly after a critical article about the company appeared in the New York Times. The investors allege that the company committed securities fraud when senior officials, including CEO Ronald J. Packard, “concealed from the market” information about high rates of student withdrawal and poor academic performance.
“The core omission behind the Defendants’ fraudulent success story was that K12 students were dropping out at staggering rates,” reads the complaint. MORE

Short URL: http://www.newsnet14.com/?p=118887

Comments

Popular posts from this blog

1914 Germany Afrikaner farmer Agreement

thank you Etienne 
translated from Afrikaner to EnglishTo all the people of the white race all over the world, most of all to the German nation: This is an important agreement Concerning the South African Boer people and the German nation. It has to do with an agreement between the Boer rebellion and the German troops in Southwest Africa. The Boer rebellion were lead by leaders of the Afrikaaner nation (General Manie Maritz, General SG Maritz, General Koss Delarey) and who’ll be fought against the English in the Second Anglo-Boer war from 1899 to 1902, where the Afrikaaner nation under hun president In Paul Kruger ulcers completely humiliated by the English when ze ulcers forced to sign the Treaty of Vereeniging in 1902. The atrocities committed against the Boers in the Concentration camps ulcers horriffic to say the least, and at least 30 000 Boer women and Children Were driven from hun farms Which Were torched under Lord Kitchener’s Scorched Earth policies. The attached files are an ima…

Gangs are everywhere, including the burbs, not to worry though 'We Have A Program For That"

TUESDAY, OCTOBER 31, 2006
Hardcore Gangs Hit Ohio Suburbs GANGS IN THE ’BURBS
Subversive element creeping beyond Columbus’ borders
Last year, Westerville North High School suspended two students who flashed MS-13 hand signs and drew gang insignia during an English-asa-second-language class. MS-13, or Mara Salvatrucha, is a notoriously violent street gang with roots in Los Angeles. It was formed by immigrants from El Salvador.

Gang crime isn’t nearly as serious or common in the suburbs as in some Columbus neighborhoods, but suburban schools and police departments are increasingly on watch.
"It’s not so centralized in the inner city as it used to be," said Pat Brooks, a veteran Columbus police gang unit officer.

Suburban police call Brooks and his colleagues when they suspect gang activity in their jurisdictions.

Most of the crack dealers in Reynoldsburg are gang members who live in Columbus, said Tye Downard, a Reynoldsburg police narcotics detective.

They go there to make mor…

MS-13 and Los Zetas Drug cartels stealing millions of barrels of oil and taking over control of the drug trade.

Los Zetas vs Ms 13 from lastcombat.com Los Zetas is an armed criminal gang that operates as a hired army for the Gulf Cartel. The group is believed to be led by Heriberto “The Executioner” Castanon. Los Zetas, the Ninth CartelTuesday, May 18, 2010 |  Borderland Beat Reporter Buggs