A securities class action has been filed against Lincoln Educational Services Corporation (LINC) on behalf of persons and entities that purchased or otherwise acquired Lincoln Educational Services securities between May 11, 2026 through August 9, 2026. This case has been filed in the USDC – NJ.
On August 10, 2026, before the market opened, Lincoln reported earnings for the second quarter of 2026. Among other things, the Company reported student starts increased by only 1% year over year despite enrollment growing 9%, “as fewer enrolled students than expected attended the first day of class.” The Company further disclosed that “during the quarter, we observed changes in the student decision-making process that affected conversion from enrollment to start” and that Lincoln “ha[s] taken, and [will] continue to take, actions to address these trends . . . .”
On this news, Lincoln’s stock price fell $10.22 or 24.93% to close at $30.77 on August 10, 2026, thereby injuring investors
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that the Company’s admissions process was not effectively converting students from enrollment to start; (2) that, as a result, the Company was experiencing a significant drop in student starts relative to enrollment; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.