Apollo Education's stock tumbles after disclosure of FTC civil investigation
Apollo Education Group Inc.'s stock tumbled 8.2% in premarket trade Wednesday, after the for-profit education company disclosed in a regulatory filing that it received on Tuesday a civil investigative demand from the U.S. Federal Trade Commission. The selloff puts the stock on track to open at a 15-year low. Apollo said it is required to produce documents and information regarding the business practices of its wholly-owned subsidiary, University of Phoenix. The FTC's demand is related to an investigation to determine whether people or companies have engaged in deceptive practices in advertising or the sale of secondary or postsecondary educational products or services. Apollo said it plans to cooperate fully with the FTC. The stock has plunged 61% year to date through Tuesday, while the S&P 500 has gained 1.7%.
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