(Against All Defendants For Violations of  Section 10(b) And Rule 10b-5 Promulgated Thereunder)   (Violations of Section 20(a) of the  Exchange Act Against The Individual Defendants)    Education Management Corporation is a publicly traded, for-profit education  company. The company offers academic programs to students through campus-based and online  instruction to earn undergraduate and graduate degrees, including doctoral degrees, and  specialized non-degree diplomas in a range of disciplines.     The company operates 110 locations across 32 states of the United States and  Canada. Education Management Corporation was founded in 1962, is headquartered in  Pittsburgh, Pennsylvania, and its shares trades on the NASDAQ under the ticker symbol   The members of the Class are so numerous that joinder of all members is  impracticable.  Throughout the Class Period, EDMC securities were actively traded on the  NASDAQ.  While the exact number of Class members is unknown to Plaintiff at this time and  can be ascertained only through appropriate discovery, Plaintiff believes that there are hundreds  or thousands of members in the proposed Class.  Record owners and other members of the Class  may be identified from records maintained by EDMC or its transfer agent and may be notified of  the pendency of this action by mail, using the form of notice similar to that customarily used in  securities class actions.    Plaintiff’s claims are typical of the claims of the members of the Class as all  members of the Class are similarly affected by defendants’ wrongful conduct in violation of  federal law that is complained of herein.    Plaintiff will fairly and adequately protect the interests of the members of the  Class and has retained counsel competent and experienced in class and securities litigation.   Plaintiff has no interests antagonistic to or in conflict with those of the Class.    A class action is superior to all other available methods for the fair and efficient  adjudication of this controversy since joinder of all members is impracticable.  Furthermore, as  the damages suffered by individual Class members may be relatively small, the expense and  burden of individual litigation make it impossible for members of the Class to individually  redress the wrongs done to them.  There will be no difficulty in the management of this action as  a class action.    Based upon the foregoing, Plaintiff and the members of the Class are entitled to a  presumption of reliance upon the integrity of the market.     Alternatively, Plaintiff and the members of the Class are entitled to the  presumption of reliance established by the Supreme Court in Affiliated Ute Citizens of the State  of Utah v. United States, 406 U.S. 128, 92 S. Ct. 2430 (1972), as Defendants omitted material  information in their Class Period statements in violation of a duty to disclose such information,  as detailed above.   Plaintiff repeats and realleges each and every allegation contained above as if  fully set forth herein.    This Count is asserted against defendants and is based upon Section 10(b) of the  Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated thereunder by the SEC.    Pursuant to the above plan, scheme, conspiracy and course of conduct, each of the  defendants participated directly or indirectly in the preparation and/or issuance of the quarterly  and annual reports, SEC filings, press releases and other statements and documents described  above, including statements made to securities analysts and the media that were designed to  influence the market for EDMC securities.  Such reports, filings, releases and statements were  materially false and misleading in that they failed to disclose material adverse information and  misrepresented the truth about EDMC’s finances and business prospects.      By virtue of their positions at EDMC, defendants had actual knowledge of the  materially false and misleading statements and material omissions alleged herein and intended  thereby to deceive Plaintiff and the other members of the Class, or, in the alternative, defendants  acted with reckless disregard for the truth in that they failed or refused to ascertain and disclose  such facts as would reveal the materially false and misleading nature of the statements made,  although such facts were readily available to defendants.  Said acts and omissions of defendants  were committed willfully or with reckless disregard for the truth.  In addition, each defendant  knew or recklessly disregarded that material facts were being misrepresented or omitted as  described above.    Information showing that defendants acted knowingly or with reckless disregard  for the truth is peculiarly within defendants’ knowledge and control.  As the senior managers  and/or directors of EDMC, the Individual Defendants had knowledge of the details of EDMC’s  internal affairs.    The Individual Defendants are liable both directly and indirectly for the wrongs  complained of herein.  Because of their positions of control and authority, the Individual  Defendants were able to and did, directly or indirectly, control the content of the statements of  EDMC.  As officers and/or directors of a publicly-held company, the Individual Defendants had  a duty to disseminate timely, accurate, and truthful information with respect to EDMC’s  businesses, operations, future financial condition and future prospects.  As a result of the  dissemination of the aforementioned false and misleading reports, releases and public statements,  the market price of EDMC securities was artificially inflated throughout the Class Period.  In  ignorance of the adverse facts concerning EDMC’s business and financial condition which were  concealed by defendants, Plaintiff and the other members of the Class purchased or otherwise  acquired EDMC securities at artificially inflated prices and relied upon the price of the securities,  the integrity of the market for the securities and/or upon statements disseminated by defendants,  and were damaged thereby.    By reason of the conduct alleged herein, defendants knowingly or recklessly,  directly or indirectly, have violated Section 10(b) of the Exchange Act and Rule 10b-5  promulgated thereunder.    As a direct and proximate result of defendants’ wrongful conduct, Plaintiff and  the other members of the Class suffered damages in connection with their respective purchases,  acquisitions and sales of the Company’s securities during the Class Period, upon the disclosure  that the Company had been disseminating misrepresented financial statements to the investing  public.   Plaintiff repeats and realleges each and every allegation contained in the  foregoing paragraphs as if fully set forth herein.   Background  