Lincoln Educational Shares Plunge 25%, Lawsuit Alleges Misstatements

Investors have filed a proposed securities class action against Lincoln Educational Services over alleged misleading statements about its student enrollment-to-start conversion during May 11–August 9, 2026. The complaints allege that the company’s admissions process was failing to convert enrolled students into students who actually began classes, while management made positive statements about business performance and prospects. The allegations followed Lincoln’s August 10 report that second-quarter enrollment grew about 9% but student starts rose only about 1%; its shares fell nearly 25% that day. Lincoln’s reported results and the lawsuit allegations are not proof of wrongdoing. Investors have until November 10, 2026, to ask the court to appoint them as lead plaintiff, though they need not do so to participate in any potential recovery.