Career Education Corporation

The Career Education shareholder derivative action has settled for $20 million. This is not a class action, so Career Education shareholders will not receive a payment; instead, the $20 million is being paid to the Company (stock ticket: CEC) by the defendants' insurance carriers. (Note: A separate settlement on behalf of those Career Education shareholders who bought their CEC stock between 2/19/09 and 11/21/11 is pending in the same court, although the plaintiffs in that case are represented by a different law firm; more information about that settlement will be available later).
In addition to the $20 million payment to the Company, the settlement also calls for CEC to adopt and implement significant corporate governance reforms to the Board. The documents pertaining to the settlement are contained in the link below.