On March 8, 2016, a federal judge granted final approval to an approximately $16.96 million cash settlement achieved by Lead Plaintiffs Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund with defendants ITT Educational Services, Inc., and two of its officers, Daniel M. Fitzpatrick and Kevin M. Modany.
At a hearing on March 8, 2016, Judge J. Paul Oetken of the United States District Court for the Southern District of New York ordered that the settlement be finally approved, that Lead Counsel Cohen Milstein Sellers & Toll PLLC's request for attorneys' fees and expenses be granted, and that Lead Plaintiffs' litigation expenses be reimbursed.
Judge Oetken's ruling finally resolves securities fraud claims asserted under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by the Lead Plaintiffs against the defendants for alleged material misrepresentations and omissions concerning the company's liabilities under certain risk-sharing agreements it had entered into with third-party lenders in connection with student loans issued to ITT students.
The $16,962,500 cash settlement benefits a class of persons and entities who purchased or otherwise acquired ITT Educational Services, Inc., common stock between April 24, 2008, and Feb. 25, 2013.
Of Judge Oetken's ruling, Carol V. Gilden, the lead attorney for the Lead Plaintiffs and the Class, said "This was hard-fought litigation, with defendants mounting a vigorous defense at every twist and turn. I am pleased that we were able to achieve an outstanding result for the Class after substantial discovery was taken in the case and resolve their claims."
Lead Plaintiffs and the Class are represented by Carol V. Gilden, S. Douglas Bunch, Kenneth Rehns, Elizabeth Aniskevich and Times Wang, all of Cohen Milstein. More information about the settlement, including the notice, proof of claim form, and settlement agreement, can be found on www.ITTSecuritiesSettlement.com.