Grand Canyon Education Sued Over Short Seller Allegations (1)

Grand Canyon Education Inc. allegedly misled investors about its accounting and a purported nonprofit spinoff, a pension plan said in a Delaware federal district court complaint based on a short seller’s research report.

The education services company ran Grand Canyon University as a for-profit Christian college prior to 2018, when it moved to make the school a separate nonprofit entity. But GCE didn’t tell investors the new GCU would remain under the company’s control and “not be a proper non-profit organization,” according to a pension plan’s Tuesday complaint in the U.S. District Court for the District of Delaware.

The pension ...