Glancy Prongay Wolke & Rotter LLP continues its investigation into potential securities fraud at Lincoln Educational Services Corp (NASDAQ: LINC). The firm announced the update on August 26, 2026, joining six other law firms scrutinizing the company.

The legal action follows significant operational discrepancies reported by Lincoln on August 10, 2026. During its second-quarter 2026 earnings release, the company disclosed that while student enrollments rose approximately 9%, student starts increased by only approximately 1%. This divergence triggered a sharp market reaction, with LINC stock falling $10.22 or 24.93% to close at $30.77 on the same day.

Investigation Details

Johnson Fistel is assessing whether Lincoln adequately disclosed the deterioration in student conversion rates and the potential impact on student starts. The firm represents individual and institutional investors in shareholder litigation involving securities fraud and breaches of fiduciary duties. Johnson Fistel maintains offices in California, New York, Georgia, Idaho, and Colorado.

Simultaneously, The Law Offices of Frank R. Cruz continues its investigation on behalf of investors concerning possible violations of federal securities laws. Based in Century City, California, the firm urges investors who suffered losses to contact them at 310-914-5007 or via email at info@frankcruzlaw.com .

Glancy Prongay Wolke & Rotter LLP, a national shareholder rights law firm based in Los Angeles, urges investors who lost money to contact them. The firm notes that persons with non-public information regarding Lincoln Educational Services Corp should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program, which may offer rewards totaling up to 30 percent of any successful recovery made by the SEC. Investors can contact Charles Linehan, Esq., at shareholders@glancylaw.com or 310-201-9150.

Holzer & Holzer, LLC, an ISS top-rated securities litigation law firm for 2021, 2022, 2023, and 2025, is also investigating whether Lincoln complied with federal securities laws. The firm highlights that during the August 10, 2026, earnings conference call, the CFO noted that "student starts increased 1% during the quarter and the lower start volume contributed to a higher cost per start." Investors who purchased Lincoln stock and suffered a loss are encouraged to contact Corey Holzer, Esq., or Joshua Karr, Esq., at (888) 508-6832 or via their respective email addresses provided by the firm.

Schall, Brown & Schwartz LLP (SBS), a national shareholder rights litigation firm based in Los Angeles, focuses its investigation on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. SBS encourages shareholders who suffered a loss to contact Brian Schall or David Schwartz at 310-301-3335 or via email at david@schallfirm.com .

The Law Offices of Howard G. Smith continues its investigation on behalf of Lincoln Educational Services Corp investors concerning the Company’s possible violations of federal securities laws. Based in Bensalem, Pennsylvania, the firm urges investors who suffered losses to contact Howard G. Smith, Esquire, at (215) 638-4847 or via email at howardsmith@howardsmithlaw.com .

Pomerantz LLP is investigating claims on behalf of investors of Lincoln Educational Services Corp. Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation.

Operational Discrepancies

On August 10, 2026, Lincoln Educational Services Corporation reported that while student enrollments increased approximately 9%, student starts increased only approximately 1%. This divergence highlights a significant drop in conversion efficiency.

During the accompanying earnings call, management stated that "the lower start volume contributed to a higher cost per start." They further indicated that the deterioration in conversion was "basically system-wide" and occurred "across the board … by program." These comments suggest a broad-based operational issue rather than an isolated incident.

The gap between enrollment growth and start growth indicates that fewer enrolled students are progressing to active status. This bottleneck could impact future revenue recognition and cash flow, raising concerns about the accuracy of prior guidance.

Legal Implications

Investors who purchased Lincoln Educational Services Corp securities and suffered losses may have legal rights under federal securities laws. All seven firms encourage investors to contact them for additional information regarding the investigations.

What the Numbers Show

The disparity between the 9% increase in enrollments and the 1% increase in starts reveals a critical inefficiency in the company’s sales funnel. While top-line interest appears strong, the inability to convert that interest into active students suggests systemic issues in recruitment, retention, or operational capacity. This pattern, coupled with the disclosed increase in cost per start, directly threatens the sustainability of revenue growth and explains the severe market penalty reflected in the 24.93% stock decline.

Lincoln Educational Services Corporation (NASDAQ: LINC) announced that its Johnson Controls Academy has produced its 500th graduate. The milestone underscores the scale of the partnership between the education provider and the building technology firm.

The program, established in 2022 at Lincoln Tech’s Columbia, Maryland campus, trains security and fire alarm installation technicians. A second location opened in Denver in 2024. This specific academy is part of a broader workforce development alliance initiated in 2018.

Program Scope and Expansion

The Johnson Controls Academy is a six-week advanced training program focused on security installation and fire services systems. It provides a direct pathway to employment at Johnson Controls locations across the United States.

Johnson Controls covers tuition, housing, and relocation expenses for students. This financial support aims to bridge the skills gap in the building technology field. Graduates transition directly into full-time roles with the company.

Broader Partnership Context

The Academy builds on a wider collaboration between Lincoln Tech and Johnson Controls that began in 2018. This earlier phase focused on training electricians, electronic service technicians, and HVAC-R technicians at Lincoln Tech schools nationwide.

To date, more than 500 participants have been trained across four career fields: HVAC-R, Data Center, Fire, and Security. The current 500th graduate milestone refers specifically to the specialized Johnson Controls Academy track launched in 2022.

Scott Shaw, President and CEO of Lincoln Tech, noted the commitment to assisting Johnson Controls in building its workforce. He highlighted the alignment of student career pathways with market needs.

Alison Neuman, Program Manager for Workforce Development at Johnson Controls, stated that demand for skilled talent continues to grow alongside increasing environmental complexity for customers. She emphasized the role of the partnership in delivering mission-critical environments.

Donnell Talley, a March graduate from the Columbia campus, now works as a Fire Service Technician in New York. He cited the program as crucial for developing technical skillsets.