Shareholder sues Idaho Virtual Academy curriculum provider K12 Inc.

K12 Inc., the private-sector, Virginia-based business that provides the curriculum for Idaho's largest online charter school, Idaho Virtual Academy, is being sued by one of its shareholders.

The Washington Post reported last week that the suit filed Jan. 30 in federal court alleges the nationwide virtual school provider broke securities law by fabricating statistics provided to investors regarding students' test performance and enrollment.

Read the full Washington Post story here

K12 has been one of Idaho Superintendent of Instruction Tom Luna's top campaign contributors since 2006, and he has received campaign funds from its CEO Ron Packard who is a defendent named in the suit.

In the Idaho Statesman's Idaho Politics blog, Dan Popkey wrote last week that Packard is a friend of Luna's.

Read Popkey's blog post here

A year ago, during the 2011 legislative session, as Idaho lawmakers were considering Luna's education reforms which later became law, there was speculation from opponents of Luna's Students Come First plan about a K12 Inc. connection. They hinted that K12 would likely benefit from the plan's call for increased technology in Idaho classrooms and that the company could become the sole provider of online curriculum to Idaho high school students.

At the time, Melissa McGrath, Idaho Department of Education spokeswoman, told The Press the speculation was a "prevalent rumor that is simply not true."

The state does not have a contract with any online vendors for the Students Come First plan, McGrath said.

"Local school boards will decide which courses are delivered online and how they are delivered online," she said. "Each local school board will determine the best provider of online education for its students, whether it is via the Idaho Education Network, through a provider such as Idaho Digital Learning Academy or another vendor, or through a blended model developed at the local level. The state will not make this determination."