A federal district judge in Illinois has dismissed a shareholder lawsuit against the Career Education Corporation on grounds that the plaintiffs had not stated a securities-law claim against the company. It was the second time in two months that the judge had ruled in favor of the company on those grounds. The plaintiffs are shareholders who allege that the company’s failure to disclose information about its business practices caused them to buy stock in the company at artificially inflated prices.

The case was a consolidation of six lawsuits filed against Career Education by shareholders during the past few years, in a period when the company’s recruiting and record-keeping practices were being questioned by accreditors and federal regulators (The Chronicle, June 30, 2005, and January 13).

In a statement released on Friday, company officials said they were gratified by the ruling. The plaintiffs have until April 17 to amend and refile their complaint one last time.