8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 23, 2006

APOLLO GROUP, INC.

(Exact name of registrant as specified in charter)

Arizona	0-25232	86-0419443
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4615 East Elwood Street, Phoenix, Arizona	85040
(Address of principal executive offices)	(Zip Code)

(480) 966-5394

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 7.01. Regulation FD Disclosure.
	Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits.
SIGNATURES
Exhibit 99.1

Item 7.01. Regulation FD Disclosure.

Apollo Group, Inc. received a shareholder demand letter dated June 20, 2006.

A copy of this demand letter is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits.

(d) Exhibits.

99.1 Shareholder Demand Letter dated June 20, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

June 23, 2006	Apollo Group, Inc. (Registrant)
	By:	/s/ Kenda B. Gonzales
	Name:	Kenda B. Gonzales
	Title:	Chief Financial Officer, Secretary, and Treasurer

June 23, 2006	Apollo Group, Inc. (Registrant)
	By:	/s/ Daniel E. Bachus
	Name:	Daniel E. Bachus
	Title:	Chief Accounting Officer and Controller

June 23, 2006	Apollo Group, Inc. (Registrant)
	By:	/s/ Brian Mueller
	Name:		Brian Mueller
	Title:		President

Exhibit Index

Exhibit No.		Description
	99.1	Shareholder Demand Letter dated June 20, 2006

EX-99.1

Exhibit 99.1

280 King of Prussia Road • Radnor, Pennsylvania 19087 • (610)667-7706 • Fax: (610)667-7056 • www.sbclasslaw.com

Writer’s Direct Dial: (610) 822-2209
E-Mail: ezagar@sbclasslaw.com

Richard S. Schiffrin^X
Andrew L. Barroway*
Marc A. Topaz*
David Kessler*
Katharine M. Ryan
Stuart L. Berman*
Gregory M. Castaldo*
Joseph H. Meltzer*
Michael K. Yarnoff^¢*

Katie L. Anderson
Ian D. Berg^X
Robert W. Biela
Katherine B. Bornstein^s
Trevan Borum
Jonathan R. Cagan^o
Edward W. Chang^¡o
Darren J. Check*
Edward W. Ciolko^o
Stephen Connolly
Mark S. Danek
Thomas W. Grammer
Mark K. Gyandoh*
Sean M. Handler
John A. Kehoe^—
Hal J. Kleinman^X
Eric Lechtzin*
Richard A. Maniskas^€
Tobias L. Millrood*
Todd M. Mosser
Jodi C. Murland
Christopher L. Nelson
Michelle N. Peterson*
Nicholas S. Pullen
Karen E. Reilly*^u¯5
Steven D. Resnick*
Lee D. Rudy^¯
Kay E. Sickles*
Tamara Skvirsky*
Sandra G. Smith
W. Lyle Stamps
Benjamin J. Sweet
Heather M. Tashman*
Gerald D. Wells, III*
Robin Winchester*
Eric L. Zagar
Andrew L. Zivitz*
Kendall S. Zylstra

June 20, 2006

VIA FEDEX
Board of Directors
Apollo Group, Inc.
c/o Elizabeth Brem, Esquire
Gibson, Dunn & Crutcher, LLP
4 Park Plaza, Suite 1400
Irvine, CA 92614-8557

     Re: Shareholder Demand

Dear Board of Directors:

     This firm represents Larry Barnett (the “Stockholder”), a holder of shares of common stock of Apollo Group, Inc. (“Apollo” or the “Company”). I write on behalf of the Stockholder to demand that the Board of Directors of Apollo (the “Board”) take action to remedy breaches of fiduciary duties and other misconduct by the directors and certain officers of the Company, as described herein.

     As you are aware, by reason of their positions as officers and/or directors of Apollo and because of their ability to control the business and corporate affairs of Apollo, the officers and directors of the Company owe Apollo and its shareholders the fiduciary obligations of good faith, loyalty, and due care, and are required to use their utmost ability to control and manage Apollo in a fair, just, honest, and equitable manner. The Stockholder believes that all the members of the Board (collectively, the “Directors”), particularly the members of the Compensation and Audit Committees, violated these core fiduciary duty principles, causing Apollo to suffer damages.

     The Stockholder contends that for several years the Board, in violation of Company’s stock option plans, improperly backdated grants of stock options to Apollo officers, including John G. Sperling, Todd S. Nelson, Jorge Klor de Alva, Jerry F. Noble, Kenda B. Gonzales, Anthony Digiovanni, and Laura Palmer Noone (collectively, the “Officers”), and improperly accounted for the backdated stock option grants in violation of Generally Accepted Accounting Principles.

^¡Admitted in MD       ^oAdmitted in NJ       ^˜Admitted in NY       ^uAlso admitted in CT       ^€Also admitted in DC
     ^¢Also admitted in DE       ^x Also admitted in IL       ^sAlso admitted in MD       * Also admitted in NJ       ^¯Also admitted in NY      ⁵Also admitted in RI

     The Stockholder maintains that each of the Directors breached their fiduciary duties by: (i) knowingly approving the Company’s foregoing improprieties, and/or (ii) abdicating their responsibility to make a good faith effort to oversee the Company’s operations and internal controls; and that the Officers were unjustly enriched by their receipt of backdated stock options. As a result of the foregoing breaches of duty, Apollo has sustained damages, including, but not limited to, loss of funds paid to the Company upon exercise of backdated stock options, and costs and expenses incurred in connection with Securities and Exchange Commission and Department of Justice investigations of the Company and its stock option grants.

     On behalf of the Stockholder, I hereby demand that the Board take action: (i) to recover from the Directors and Officers the amount of damages sustained by the Company as a result of the misconduct alleged herein, (ii) to recover from the Officers the improperly awarded stock options, and (iii) to correct deficiencies in the Company’s internal controls and equity compensation practices.

     If within a reasonable period of time after receipt of this letter the Board has not taken action as demanded herein, the Stockholder will commence a shareholder derivative action on behalf of Apollo seeking appropriate relief.

Very truly yours,


SCHIFFRIN & BARROWAY, LLP
 

 

Eric L. Zagar