Dive Brief:
- For-profit Bridgepoint Education Inc. has reported in a U.S. Securities and Exchange Commission filing that it is the target of two investigations.
- Bridgepoint, which runs Ashford University, said the Massachusetts Attorney General’s Office last week issued a “civil investigative demand” for information about whether the company’s business practices complied with the state’s consumer protection laws.
- On July 22, a day after the Massachusetts notice, the SEC subpoenaed Bridgepoint regarding certain accounting practices dating back to Jan. 1, 2009.
Dive Insight:
The accounting practices under investigation by the SEC are the company’s revenue recognition, receivables, and other matters relating to Bridgepoint’s plan to restate its 2013 financial statements and revise its 2011 and 2012 financial statements, as well as a prior revision. Because such restatement and revisions are a big deal in accounting circles and with investors, the SEC scrutiny isn’t unusual. The Massachusetts request is for Bridgepoint and Ashford student information and complaints going back to Jan. 1, 2006. The company reported that it is part of a larger inquiry into for-profit educational institutions.
