Grand Canyon is an education services company incorporated in the State of Delaware. The claims alleged in this case arise from Defendants’ misrepresentations and omissions regarding Grand Canyon’s spin-off of its education assets to become purported non-profit, independent entity Grand Canyon University (“GCU”). The complaint alleges that Defendants inflated Grand Canyon’s financial results by using GCU as an off-balance-sheet entity to which Grand Canyon was able to funnel expenses and costs in exchange for a disproportionate amount of revenue. Defendants repeatedly made false and misleading statements to investors describing GCU as a “non-profit” and “independent” institution and misstating Grand Canyon’s role as a third-party provider of education services. As a result of Defendants’ misrepresentations, shares of Grand Canyon’s common stock traded at artificially inflated prices during the Class Period. The truth emerged through a series of disclosures beginning on September 9, 2019, when short seller Citron Research published a report examining Grand Canyon’s financials and concluding that the Company “is stuffing GCU with expenses to inflate its own profitability and as a result bankrupting GCU.” Then, after the close of market on November 6, 2019, Grand Canyon announced that it had received a letter from the U.S. Department of Education (“DOE”) denying its application for designation of GCU as a non-profit. That denial was based on the DOE’s finding that GCU was Grand Canyon’s “captive client” and GCU “is not the entity actually operating [GCU]” (emphasis in the original). Finally, on January 28, 2020, Citron Research published a second report expanding on the DOE’s findings, and citing hundreds of pages of supporting documentation from Grand Canyon that Citron obtained through the Freedom of Information Act. That report described Grand Canyon as the “educational Enron,” using a “captive non-reporting subsidiary” to “dump expenses and liabilities, while receiving a disproportionate amount of revenue at inflated margins in order to artificially inflate the stock price.” As a result of these disclosures, the price of Grand Canyon common stock declined precipitously.