The lawsuit alleges Lincoln made false and/or misleading statements and failed to disclose that: (i) the Company’s admissions process was not effectively converting students from enrollment to start; and (ii) as a result, the Company was experiencing a significant drop in student starts relative to enrollment.
On August 10, 2026, Lincoln reported its second quarter 2026 financial results, revealing that 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.” On this news, the price of Lincoln shares declined by $10.22 per share, or approximately 24.93%, from $40.99 per share on August 7, 2026 to close at $30.77 on August 10, 2026.