An expose of bad businesses and their unethical practices

The Apollo Group, which owns the online University of Phoenix, has been found guilty of securities fraud and ordered to pay $270 million to a group of investors. The problems stem from the cover-up of a report that was highly critical of its recruiting practices. Apollo felt that the report was biased and that it would put off investors in the company. A federal court has now disagreed. Apollo will appeal

Stephen Basser, attorney for the Policeman's Annuity and Benefit Fund of Chicago, the lead plaintiff in the class-action lawsuit, said the amount is among the largest-ever verdicts in securities litigation. He said such cases usually are settled before trial or dismissed. When they do go to trial, defendants often prevail, as did former technology highflier JDS Uniphase in a monster case that ended a couple of months ago.

Although the verdict will be costly if upheld, the news of the resolution of the suit has had a positive impact on Apollo stock. "The Street always seems to like things when they're resolved, even if the resolution is negative," said Trace Urdan, who follows Apollo for brokerage firm Signal Hill. "The uncertainty is gone." Put another way, resolving Bad Business issues is good for business.