Investors File Securities Class Action Against Lincoln Educational

The litigation centers on statements made by management between May 11 and August 9, 2026. During a May investor call, Lincoln Educational reported 19.5% growth in student starts, prompting leadership to raise annual guidance to a range of 10% to 14%. The market responded with optimism, driving share prices up by 10.6% that same day. However, the narrative shifted abruptly on August 10, when the company revealed that student start growth had slowed to just 1% for the second quarter.

This discrepancy between earlier growth projections and the actual quarterly results led to a 24.9% drop in stock price, erasing more than $300 million in market capitalization in a single session. Hagens Berman, the firm representing the plaintiffs, is now investigating whether these public statements intentionally misled investors. Lead attorney Reed Kathrein stated the firm is examining the accuracy of the company’s enrollment reporting and whether the collapse in growth was misrepresented to shareholders. Investors impacted by these losses have until November 10, 2026, to apply for the lead plaintiff position in the ongoing case.