Erickson v. Corinthian Colleges, Inc., et al.

Frequently Asked Questions

Helpful Hint: Using the general subject of your question may provide the best search results. For example, enter the word "hearing" in the search box to find information about the Settlement's Fairness Hearing.

1. Why did I receive a Notice?

You or someone in your family may have purchased or otherwise acquired Corinthian common stock between the Class Period, which is between August 23, 2010 and April 14, 2015, both dates inclusive.

The Court directed that this Notice be sent to Class Members because they have a right to know about the proposed Settlement of this class-action lawsuit and about all of their options before the Court decides whether to approve the Settlement. If the Court approves the Settlement and after objections and appeals—if any—are resolved, the Claims Administrator appointed by the Court will make the payments provided for in the Settlement.

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2. What is this lawsuit about?

The proposed Settlement resolves a lawsuit over whether Corinthian Defendants made false and misleading statements about Corinthian’s business operations and compliance with government regulations. If approved by the Court, the Settlement will provide $3,500,000, plus interest earned thereon to pay claims of investors who purchased or otherwise acquired Corinthian common stock between August 23, 2010 and April 14, 2015, inclusive. See Page 2, Question 1 of the Notice for more information.

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3. What is a class action?

A class action is a type of lawsuit in which one or several individuals or entities prosecute claims on behalf of all members of a group of similarly-situated persons and entities to obtain monetary or other relief for the benefit of the entire group. Class actions avoid the necessity of each member of a class having to file his, her, or its own separate lawsuit to obtain relief. Class actions are used to decide legal and factual issues that are common to all members of a class.

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4. Why is there a Settlement?

This Action has been litigated since June 2013. On May 4, 2015, Corinthian declared bankruptcy. This Action has not gone to trial, and the Court has not decided in favor of the Individual Defendants or of the Class. Instead, both sides agreed to the Settlement to avoid the distraction, costs, and risks of further litigation. See Page 3, Question 4 of the Notice for more information.

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5. Who is considered a Class Member?

All persons or entities purchased or otherwise acquired Corinthian common stock between August 23, 2010 and April 14, 2015, both dates inclusive, and held as of the close of trading on April 14, 2015.

Excluded from the Class are the following and their immediate family members:

  • Defendants;
  • all current and former directors and officers of Corinthian during the Class Period; and
  • any family member, trust, company, entity or affiliate controlled or owned by any of the excluded persons and entities referenced above.

If you are still not sure whether you are included, you can ask for free help. You can contact your broker or the Claims Administrator at (855) 907-3149 for more information. See Page 3/4, Questions 5-7 of the Notice for more information.

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6. What will I receive from this Settlement?

In exchange for the Settlement and the release of the Settled Claims as well as dismissal of the Action, Defendants have agreed that a payment of $3.5 million will be made on their behalf to be divided, after taxes, fees, and expenses, pro rata among all Class Members who send in a valid Proof of Claim form.

Your share of the fund will depend on several factors, including the following: how many Class Members submit timely and valid Proof of Claim forms; the total Recognized Losses represented by the valid Proof of Claim forms that the Class Members send in; the number of shares of Corinthian common stock that you purchased or acquired during the Class Period; how much you paid for the shares; when you purchased; and if you sold your shares and for how much.

By following the instructions in the Plan of Allocation, you can calculate what is called your Recognized Loss. It is unlikely that you will get a payment for all of your Recognized Loss. After all Class Members have sent in their Proof of Claim forms, the payment you get will be a part of the Net Settlement Fund equal to your Recognized Loss divided by the total of everyone’s Recognized Losses. See the Plan of Allocation on Page 8 of the Notice for more information.

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7. How can I receive a payment?

To qualify for a payment, you must have submitted a timely and valid Claim Form.

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8. When will I receive my payment?

The Court held the Settlement Hearing on October 31, 2016 and approved the Settlement, Plan of Allocation, and awarded attorney’s fees and expenses on November 9, 2016. Even though the Court approved the Settlement, there may be appeals which can take time to resolve, perhaps more than a year. It also takes a long time for all of the Claim Forms to be accurately reviewed and processed. Please be patient.

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9. What are my rights as a Class Member?

If you are a Class Member and wished to participate in the distribution of proceeds from the Settlement, you must have submitted a valid and timely claim form, postmarked or received on or before December 16, 2016.

The deadline to exclude yourself was December 16, 2016, and the deadline to object to the proposed Settlement, the Plan of Allocation, and/or the Fee and Expense Application was September 16, 2016.

If you did nothing, you will receive no money from this Settlement. And, unless you excluded yourself, you will not be able to start a lawsuit or be part of any other lawsuit against the Released Parties about the legal issues in this case, ever again.

These rights are further explained in the Notice.

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11. If I did not exclude myself, can I sue the Defendants and the other Released Parties for the same thing later?

No. Unless you excluded yourself, you will not be able to start a lawsuit or be part of any other lawsuit against the Released Parties about the legal issues in this case, ever again. The exclusion deadline was December 16, 2016.

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12. If I excluded myself, can I get money from the proposed Settlement?

No. If you excluded yourself, you may not send in a Proof of Claim to ask for any money. But you may sue or be part of a different lawsuit against the Defendants and the other Released Parties.

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14. When and where will the Court decide whether to approve the proposed Settlement?

The Court held the Settlement Hearing on October 31, 2016 and approved the Settlement, Plan of Allocation, and awarded attorney’s fees and expenses on November 9, 2016.

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15. Do I have a Lawyer in this case?

The Court appointed the law firm Pomerantz LLP to represent you and other Class Members. These lawyers are referred to as Lead Counsel. You will not be personally liable for the fees and expenses incurred by these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

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16. What are acceptable forms of supporting documentation?

Each section of the Claim Form must be fully documented to be considered eligible. This includes all purchase transactions, all sales transactions, and those securities held prior to the start of the class period or remaining unsold after the end of the class period. Any documentation provided must include the claimant’s name and address or account number. Appropriate documentation to support your claim includes, trade confirmation slips showing the trade date, quantity, price per security and net amount of the transactions In addition, official monthly, quarterly and/or year-end broker statements provided by your broker listing your transactions that includes: the trade date, quantity and price paid or received for each security. These statements may also be used to support the quantity of securities held after the class period has ended. Spreadsheets, charts, tax forms, handwritten information, and other documentation prepared by the claimant are not considered adequate supporting documentation. Please note that the Claims Administrator, Lead Counsel or the Court reserve the right to request additional information or documentation.

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17. How do I update my contact information?

If your address changes from the address to which the Notice was directed, you must notify the Claims Administrator of your new address as soon as possible.

Please send a request to update your contact information, including your old address, new address, and new telephone number to the Claims Administrator at the address listed below:

Corinthian Colleges, Inc. Securities Litigation
c/o Garden City Group, LLC
Claims Administrator
P.O. Box 10274
Dublin, OH 43017-5774

You may also send the request via email to the Claims Administrator at

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18. Where can I get additional information on the Settlement?

The Notice summarizes the proposed Settlement. More details are in the Stipulation. The Stipulation is the controlling document describing the proposed Settlement and its terms govern anything to the contrary in this Notice Both can be found on this website.

You may also call 1-855-907-3149 or email the Claims Administrator at If you have any questions about the settlement, you may also contact Lead Counsel:

Pomerantz LLP
600 Third Ave.,
20th Floor,
New York, NY 10016
(212) 661-1100,

For a fee, all papers filed in this Action are also available at

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19. What happens if my claim is filed incorrectly or if I do not provide adequate documentation?

If your claim is deficient in any way, you will receive a Notice of Rejection that outlines the problem(s) with the claim and how to resolve them. Complete the form to the best of your ability. You may add documentation to or update your claim in order to cure the deficiencies.

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20. Is there a cut-off date for deficiency responses?

The letter that was sent to you provided a response due date. However, if you were unable to provide the information or necessary material to fix your claim by that date, but believe you can still provide the information to cure your claim please submit your response as soon as possible. We will do everything we can to update your claim, however, please be advised that there is no guarantee of the acceptance of late responses as all late claim amendments are subject to Counsel approval.

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