Lincoln Educational Services Corporation faces a federal securities class action covering investors who purchased or acquired its shares from May 11 through Aug. 9, 2026. The complaint alleges the company and certain executives failed to disclose that its admissions process was not effectively converting enrolled students into student starts, while making positive statements about its business and prospects. Lincoln’s Aug. 10 second-quarter report showed student starts rose 1% year over year, compared with 9% enrollment growth, citing fewer enrolled students attending the first day of class and changes in student decision-making. Shares fell $10.22, or 24.93%, to $30.77 on unusually heavy volume, erasing more than $300 million in market capitalization. Faruqi & Faruqi is investigating potential claims and said investors must seek lead-plaintiff appointment by Nov. 10, 2026; Hagens Berman had previously announced an investigation.