Back in June, the WSJ reported on the relatively rare phenomenon of companies taking class-action shareholder suits all the way to trial; JDS Uniphase is one of a handful that have won.

Now it looks as though the Apollo Group can plus claim that rare distinction. Yesterday, Apollo, owner of the for-profit University of Phoenix, persuaded a judge to throw out a $277 million securities-fraud verdict by the company’s failure to reveal a report criticizing the school’s operations. Here’s the order from U.S. District Judge James A. Teilborg in Phoenix. And here’s a Bloomberg report.

Judge Teilborg ruled that Apollo stockholders couldn’t show

their losses were caused by ex-CEO Todd Nelson’s withholding of a U.S. Education station report that accused the company of violating a federal ban on paying staff on the basis of enrollment numbers.

“Securities laws are not insurance to protect against profitable losses,” Teilborg said at a hearing in federal court in Phoenix. Stephen Basser, a lawyer for Apollo investors, said they’ll appeal the judge’s decision.

Original post by Dan Slater

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