Reuters: Regulatory News: Career Education says accreditor lifts show-cause notice

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Career Education says accreditor lifts show-cause notice May 7th 2012, 15:57 Mon May 7, 2012 11:57am EDT May 7 (Reuters) - Career Education Corp said an accrediting agency has lifted a show-cause notice on all its colleges related to prior job placement rates of its students, sending its shares up 13 percent. In November, the Accrediting Council for Independent Colleges and Schools (ACICS) had issued a show-cause notice after Career Education discovered improper placement determination practices at some of its colleges. Career Education's then CEO quit after actual placement rates were revealed to be lower than the 65 percent required by the accrediting authority. Its stock has lost about 60 percent of its value since then. "The company is taking steps to improve placement rates at all of its campuses and will continue to review, on a program-by-program basis, placement activities at all of its campuses," Career Education said in a statement on Monday. Though the show-cause notice was lifted, the ACICS has placed four campuses on probation as placement rates were below 40 percent for the period July 1, 2010 to June 30, 2011. Probation will be lifted when placement rates increase to a level acceptable by ACICS. Twenty-four schools were subjected to additional oversight, the company said. Shares of the company were up 6 percent to $6.81 on Monday on the Nasdaq. They touched a high of $7.26 earlier in the session. Link this Share this Digg this Email Reprints

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