On Wednesday, the Ninth Circuit Court of Appeals reinstated a $277.5 million jury award against Apollo Group Inc. after the trial judge had tossed it out, Bloomberg reports.
U.S. District Judge James Teilborg threw out the verdict in 2008, finding that Apollo stockholders couldn’t show their losses were caused by ex-CEO Todd Nelson’s withholding of a U.S. Education Department report that accused the company of violating a federal ban on paying staff on the basis of enrollment numbers. The Ninth Circuit, however, held this week that the jury could have “reasonably found” that analyst reports were “corrective disclosures” that deflated the stock price.
Business Week: Apollo Group’s $277.5 Million Jury Loss Is Reinstated on Appeal
