On December 27, 2023, the U.S. Federal Trade Commission (“FTC”) announced they had sued GCE, GCE’s affiliated university partner, Grand Canyon University (“GCU”), as well as Brian Mueller, GCU’s president and GCE’s Chief Executive Officer, for deceptive advertising, violating the FTC’s telemarketing sales rule, and for falsely marketing GCU as a nonprofit entity.
On this news, GCE’s stock price fell $9.00 per share, or 6%, to close at $132.56 per share on December 28, 2023.