Investors who bought or otherwise acquired Lincoln Educational Services securities between May 11, 2026 and August 9, 2026 may be covered by a proposed class action alleging Lincoln Educational overstated student start growth at its Lincoln Tech schools while enrolled students were not showing up for class. No class has been certified and there is nothing to file yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Lincoln Educational Services Corporation and its executives have not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
A Lincoln Educational Services investor filed a proposed securities class action against the company and other defendants on September 11, 2026 in the U.S. District Court for the District of New Jersey. The case is Bacha v. Lincoln Educational Services Corporation, et al., No. 26-cv-11842. It is brought on behalf of investors who bought or otherwise acquired Lincoln Educational securities between May 11, 2026 and August 9, 2026.Lincoln Educational Services, based in New Jersey, runs career and technical schools under the Lincoln Tech name, training students for automotive, skilled-trades, healthcare and information technology jobs. Its stock trades on the Nasdaq under the ticker LINC. The complaint alleges that the company promoted strong student start growth while enrolled students were not showing up for the first day of class, and points to its August 10, 2026 second-quarter report as the day the alleged truth came out.
The case is at the complaint stage. No lead plaintiff has been appointed, no class has been certified, and there is no settlement, fund or claim form. It is a case for investors, not for Lincoln Tech students.
Free settlement alerts
Get notified when new class actions open to claims
Join thousands of readers who get the latest class action settlements you may qualify for — delivered straight to your inbox.
What the Complaint Alleges Was Misleading
According to notices summarizing the complaint, Lincoln Educational told investors during the class period that student starts had grown 19.5% and raised its financial guidance. The complaint alleges those statements were misleading because the company did not disclose that:- its admissions process had stopped converting enrolled students into students who attended the first day of class;
- enrolled students were not starting class, which would weigh on start growth; and
- the resumption of federal student loan repayment was already driving borrower defaults.
Student starts, the number of new students who actually begin a program, are the main growth measure for a for-profit career school operator, because tuition revenue follows them. Lincoln Educational has not been found liable, and none of the allegations has been tested in court.
The August 10, 2026 Second-Quarter Report
On August 10, 2026, Lincoln Educational reported second-quarter 2026 results showing student start growth far below the pace it had described earlier in the year. According to the complaint, the stock fell $10.22, or 24.93%, to close at $30.77 that day on unusually heavy trading volume.Who Is Being Sued and Under Which Laws
The defendants are Lincoln Educational Services Corporation and others named in the complaint. The complaint asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and under Section 20(a) of the Exchange Act, which covers people who control a company.These claims require the plaintiff to show, among other things, that the defendants made false or misleading statements with intent to mislead or with severe recklessness, and that the statements caused investors’ losses. None of the allegations has been tested in court.
Who Is in the Proposed Class?
According to published notices, the proposed class is investors who bought or otherwise acquired Lincoln Educational securities between May 11, 2026 and August 9, 2026, inclusive. The defendants and their affiliates are typically excluded. The class exists only as a proposal until a court certifies it, and its definition can change as the case proceeds.What Happens Next
The Private Securities Litigation Reform Act requires the first plaintiff in a securities class action to publish a notice of the case, after which investors have 60 days to ask the court to appoint them lead plaintiff. According to PSLRA notices published by law firms, that deadline in the Lincoln Educational case is November 10, 2026, which matches the 60-day window from the September 11 filing. The date comes from the notices, not from a court order. After the court picks a lead plaintiff and lead counsel, an amended complaint usually follows, and the defendants typically move to dismiss it.Members of a proposed securities class generally remain in the class without seeking the lead plaintiff role. There is no money available unless the case produces a settlement or judgment, which would come with its own notice and claim process.
Questions
Who is covered by the Lincoln Educational securities class action?
According to published notices of the case, the proposed class is investors who bought or otherwise acquired Lincoln Educational Services Corporation securities between May 11, 2026 and August 9, 2026, inclusive. The defendants and their affiliates are typically excluded. No class has been certified, and the definition can change as the case proceeds.
What is the November 10, 2026 deadline in the Lincoln Educational case?
According to PSLRA notices published by law firms, November 10, 2026 is the deadline for investors to ask the court to appoint them lead plaintiff under the Private Securities Litigation Reform Act. That matches the statute’s 60-day window from the September 11, 2026 filing. It is not a claim deadline. Members of a proposed securities class generally remain in the class without seeking that role, and there is no money or claim form available.
What does the Lincoln Educational lawsuit claim was misleading?
The complaint, as summarized in notices of the case, alleges that Lincoln Educational promoted strong student start growth and raised guidance without disclosing that students who had enrolled were not showing up for their first day of class, and that the resumption of federal student loan repayment was already driving borrower defaults. Lincoln Educational has not been found liable.
Is this lawsuit about Lincoln Tech students?
No. This is a securities case brought on behalf of investors who bought Lincoln Educational stock or other securities during the class period. It does not seek money for students and is not a student loan or tuition case. Lincoln Educational operates its schools under the Lincoln Tech name.
Is there a Lincoln Educational securities settlement to claim?
There is no settlement, fund or claim form. The case is at the complaint stage, no lead plaintiff has been appointed and no class has been certified. Money would become available only if the case produced a settlement or judgment, which would come with its own court-approved notice and claim process.
Sources
- PSLRA notices of the case published on Newsfile, ACCESS Newswire, PR Newswire and GlobeNewswire, September – November 2026 — case caption and number (Bacha v. Lincoln Educational Services Corporation, et al., No. 26-cv-11842, D.N.J.), filing date, class period, lead plaintiff deadline and the complaint’s allegations. OCA has not yet reviewed the complaint itself.
- Lincoln Educational Services SEC filings — EDGAR company filing index
