Apollo Group, Inc. NASD: APOL

A class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of all who purchased or otherwise acquired securities of Apollo Group, Inc. (Nasdaq: APOL) ("Apollo" or the "Company") from March 12, 2004 through September 14, 2004, inclusive (the "Class Period").

The complaint charges Apollo, Todd S. Nelson, Kenda B. Gonzales, and Daniel E. Bachus with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly based recruiter's compensation on enrollment figures, in violation of U.S. regulations that forbid schools whose students receive federal financial aid from tying pay directly to enrollments; (2) that as a consequence of the foregoing, defendants were able to demonstrate dazzling growth at schools such as the University of Phoenix, even though recruiters bolstered their numbers by signing up unqualified students; and (3) that as a result of the illegal practices, the Company's earnings and net income were materially inflated at all relevant times.

On September 15, 2004, the Wall Street Journal published an article entitled "Will Apollo's Bad Report Card Get Its Shares Grounded?" The article stated that Apollo engaged in a "culture of duplicity" in which supervisors improperly lavished money on sales employees for signing up scores of new students, including those unable to cut it. This news shocked the market. Shares of Apollo fell $1.41 per share, or 1.76 percent on September 15, 2004, to close at $78.68 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.