On August 10, 2026, before the market opened, Lincoln reported earnings for the second quarter of 2026. Among other things, the Company reported student starts increased by only 1% year over year despite enrollment growing 9%, “as fewer enrolled students than expected attended the first day of class.” The Company further disclosed that “during the quarter, we observed changes in the student decision-making process that affected conversion from enrollment to start” and that Lincoln “ha[s] taken, and [will] continue to take, actions to address these trends . . . .”
On this news, Lincoln’s stock price fell $10.22 or 24.93% to close at $30.77 on August 10, 2026, thereby injuring investors
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that the Company’s admissions process was not effectively converting students from enrollment to start; (2) that, as a result, the Company was experiencing a significant drop in student starts relative to enrollment; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
