K12 Inc., a prominent provider of online education, has reached a tentative settlement in a class action brought by investors who said they were misled about its business and academic performance.
The company has agreed to pay $6.75 million to the plaintiffs, while K12 officials said they also continue to deny any claims of wrongdoing. The agreement between the two sides still must be approved by a judge in the case.
The lawsuit alleged the Herndon, Va.-based company misled shareholders by overstating its academic performance of its students, and by not providing accurate information about student-to-teacher ratios and how students are recruited. The lead plaintiff is the Arkansas Teacher Retirement System.
A version of this article appeared in the March 13, 2013 edition of Education Week as K12 Inc. Settles Suit Filed by Investors