Bridgepoint, Bankrate Plunge in After-Hours Trading

Bridgepoint Education (BPI) fell about 9% after the for-profit educator revealed that the Department of Justice is investigating how the company compensates its admissions personnel.

“In its letter, the Justice Department indicated that it is considering a formal process to obtain evidence as part of its investigation and stated it is open to a voluntary presentation by the Company addressing the subject of its investigation,” Bridgepoint said in a statement. The company didn’t get into further detail. The college has been criticized for the amount of money it spends on recruiting students.

Bankrate (RATE) fell 26% after saying it expects to earn 11 to 13 cents per share in the third quarter, well below Street expectations for 20 cents. Bankrate’s revenue expectations also fell well below analysts’ expectations. The financial information provider now expects revenue to grow between 8% and 12% for 2012, versus prior expectations for greater than 20% growth.

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