Pension Trust Fund For Operating Engineers v. DeVry Education Group, Inc. et al

Northern District of Illinois, ilnd-1:2016-cv-05198

MOTION by Plaintiffs Pension Trust Fund for Operating Engineers, Utah Retirement Systems for leave to file Joint Motion for Leave to File a Second Amended Complaint and to Amend the Briefing Schedule of Defendants' Motion to Dismiss

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Case: 1:16-cv-05198 Document #: 48 Filed: 12/19/16 Page 1 of 5 PageID #:456 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION PENSION TRUST FUND FOR OPERATING ENGINEERS, Individually and on Behalf of All Case No. 1:16-CV-05198 Others Similarly Situated, Hon. Jorge L. Alonso Plaintiff, v. JURY TRIAL DEMANDED DEVRY EDUCATION GROUP, INC., DANIEL ECF CASE HAMBURGER, RICHARD M. GUNST, PATRICK J. UNZICKER, AND TIMOTHY J. WIGGINS, Defendants. JOINT MOTION FOR LEAVE TO FILE A SECOND AMENDED COMPLAINT AND TO AMEND THE BRIEFING SCHEDULE OF DEFENDANTS' MOTION TO DISMISS Lead Plaintiff Utah Retirement Systems ("URS"), by and through its attorneys, Spector Roseman Kodroff & Willis, P.C. and Wexler Wallace LLP, and Defendants DeVry Education Group, Inc. ("DeVry"), Daniel Hamburger, Richard M. Gunst, Patrick J. Unzicker, and Timothy J. Wiggins, by and through their attorneys, Kaye Scholer LLP, respectfully request that the Court enter a modified schedule providing deadlines for URS to file a Second Amended Complaint and to amend the schedule for briefing on Defendants' motion to dismiss the Second Amended Complaint. In support of this joint motion, the Parties state as follows: 1. On September 15, 2016, URS and Defendants DeVry, Hamburger, Gunst, and Wiggins jointly moved this Court for an order setting forth a schedule for the filing of an Amended Complaint and for briefing any motion to dismiss the Amended Complaint (ECF No. 39). 1 Case: 1:16-cv-05198 Document #: 48 Filed: 12/19/16 Page 2 of 5 PageID #:457 2. On September 16, 2016, the Court issued a Minute Order (the "September 16th Order") (ECF No. 41) setting forth the following schedule for the filing of an Amended Complaint and for briefing any motion to dismiss the Amended Complaint: a. Amended Complaint to be filed on or before November 8, 2016; b. Defendants to move to dismiss or otherwise respond to the Amended Complaint on or before January 20, 2016; c. Lead Plaintiff's opposition to any motion to dismiss to be filed on or before March 21, 2017; d. Defendants' reply brief in support of any motion to dismiss to be filed on or before April 20, 2017. 3. On November 8, 2016, URS filed its Amended Complaint, which, inter alia, added Patrick J. Unzicker as a new defendant in this litigation (ECF No. 43). The Amended Complaint alleged, among other things, that DeVry announced inflated job placement rates and salary statistics of DeVry University graduates between August 26, 2011 and January 27, 2016, which artificially inflated DeVry's common stock and damaged URS and the Class. Lead Plaintiff's allegations were based, in part, on a complaint that had been filed by the Federal Trade Commission (the "FTC") against DeVry and certain of its subsidiaries on January 27, 2016, in the United States District Court for the Central District of California. 4. On December 15, 2016, DeVry and the FTC announced that DeVry and DeVry University have agreed to a settlement to resolve the FTC lawsuit. Under the settlement, DeVry will pay $49.4 million to be distributed to qualifying students and $50.6 million in loan forgiveness for unpaid student loans and other student debt for certain former students. In 2 Case: 1:16-cv-05198 Document #: 48 Filed: 12/19/16 Page 3 of 5 PageID #:458 addition, the settlement also requires DeVry to take certain compliance measures concerning the future advertising of graduate outcomes and educational benefits. 5. URS believes that the settlement of the FTC's claims against DeVry is a relevant development to URS's claims against Defendants in this litigation. As such, URS seeks leave to file a Second Amended Complaint on or before December 23, 2016 in order to add additional information relating to the FTC settlement. 6. The parties request that the September 16th Order also be amended as follows: a. Lead Plaintiff will file a Second Amended Complaint on or before December 23, 2016; b. Defendants will file a motion to dismiss or otherwise respond to the Second Amended Complaint on or before January 27, 2017; c. Lead Plaintiff will file a brief in opposition to any motion to dismiss on or before March 28, 2017; and d. Defendants may file a reply on or before April 27, 2017. DATED: December 19, 2016 WEXLER WALLACE LLP /s/ MarkR. Miller Kenneth A. Wexler Mark R. Miller 55 West Monroe Street, Suite 3300 Chicago, Illinois 60603 Tel: (312) 346-2222 Fax: (312) 346-2200 kaw@wexlerwallace.com mrm@wexlerwallace.com Liaison Counsel SPECTOR ROSEMAN KODROFF & WILLIS, P.C. /s/ MarkS. Willis 3 Case: 1:16-cv-05198 Document #: 48 Filed: 12/19/16 Page 4 of 5 PageID #:459 Mark S. Willis (pro hac vice) 1101 Pennsylvania Avenue, N.W., Suite 600 Washington, D.C. 20004 Tel: (202) 756-3601 Fax: (202) 756-3602 Email: mwillis@srkw-law.com /s/ Robert M. Roseman Robert M. Roseman (pro hac vice) Daniel J. Mirarchi (pro hac vice) Andrew N. Dodemaide (pro hac vice) 1818 Market Street, Suite 2500 Philadelphia, PA 19103 Tel: (215) 496-0300 Fax: (215) 496-6611 Email: rroseman@srkw-law.com dmirarchi@srkw-law.com adodemaide@srkw-law.com Attorneys for Utah Retirement Systems KAYE SCHOLER LLP /s/ Alan N. Salpeter Alan N. Salpeter Bryan M. Westhoff 70 West Madison Street, Suite 4200 Chicago, IL 60602 Tel: (312) 583-2300 Fax: (312) 583-2360 Email: alan.salpeter@kayescholer.com bryan.westhoff@kayescholer.com KAYE SCHOLER LLP Phillip A. Geraci (pro hac vice) Jeffrey A. Fuisz (pro hac vice) Aaron F. Miner (pro hac vice) 250 West 55th Street New York, NY 10019 Tel: (212) 836-8000 Fax: (212) 836-8689 Email: phillip.geraci@kayescholer.com jeffrey.fuisz@kayescholer.com aaron.miner@kayescholer.com Attorneys for Defendants 4 Case: 1:16-cv-05198 Document #: 48 Filed: 12/19/16 Page 5 of 5 PageID #:460 CERTIFICATE OF SERVICE The undersigned, an attorney, certifies that on December 19, 2016, he caused true copies of the foregoing to be served upon all counsel of record using the Court's CM/ECF system. /s/ MarkR. Miller Mark R. Miller 5