Education Management must file 10-K or Nasdaq listing compliance plan

By Caroline Salls

Pittsburgh, Oct. 8 – Education Management Corp. received a standard notice from Nasdaq stating that the company is not in compliance with a listing rule and giving the company 60 days to submit a plan to regain compliance, according to a news release.

The notice stemmed from Education Management’s delay in filing its 10-K for the fiscal year ended June 30.

The company said the notice has no immediate effect on the listing or trading of its common stock on the Nasdaq Global Select Market.

According to the release, Education Management is resolving comments raised by the SEC’s Division of Corporation Finance and will file the 10-K upon resolution of the comments.

The company said in an 8-K filed with the SEC that the comments are related to its revenue recognition and related bad debt reserve recorded upon student withdrawals from school.

If necessary, Education Management said it will submit a plan to Nasdaq if it does not file its 10-K before the expiration of the 60-day period.

Education Management said its directors and management are exploring voluntarily delisting the common stock from Nasdaq and suspending its reporting obligations under the Securities Exchange Act of 1934. The company’s board of directors has not formally approved the voluntary delisting, the release said.

Education Management is a Pittsburgh-based provider of private post-secondary education. It started the offer on Oct. 2.

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