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Conflicts & Nepotism – A Dangerous Employment Cocktail

Last week, Alabama Governor Robert Bentley removed Alabama State University Trustee Marvin Wiggins for violating the University’s conflict of interest rules. The removal proved once again that if you are responsible for the...more

SEC Resolves First Case Under New Municipalities Continuing Disclosure Cooperation Initiative

On July 8, 2014, the SEC announced that it had settled charges that a school district in California misled bond investors about its failure to comply with its continuing disclosure obligations under Rule 15c2-12 of the...more

SEC Issues First MCDC Cease and Desist Order

Yesterday, the Securities and Exchange Commission (SEC) announced its first cease and desist order under its Municipalities Continuing Disclosure Cooperation Initiative (MCDC Initiative). The MCDC Initiative was introduced on...more

The CFPB & UDAAP: A “Know It When You See It” Standard?

Institutions regulated by the Consumer Financial Protection Bureau (CFPB) and subject to its enforcement authority are dealing with of the agency’s sweeping authority to prohibit unfair, deceptive, and abusive acts or...more

Alleged illegal recruiting for college leads to False Claims Act complaint

In Brief - Stevens-Henager College and its owners are accused of offering compensation incentives to admission consultants based on the number of students they recruit. - The government alleges that the college...more

SEC Charges Charter School Operator with Disclosure Violations, Suggests It May Charge Individuals

The U.S. Securities and Exchange Commission recently charged a Chicago charter school operator with defrauding investors in a $37.5 million bond offering by failing to disclose transactions that presented conflicts of...more

Illinois Attorney General Files UDAAP Action Against For-Profit College

The Illinois Attorney General, who filed suit two years ago under the Illinois Consumer Fraud and Deceptive Business Practices Act against a group of entities related to for-profit college financing, amended its complaint to...more

Illinois AG wins motion to add Dodd-Frank UDAAP claim to complaint against for-profit college

Earlier this month, an Illinois state court granted the motion of the state’s Attorney General to further amend her complaint in a lawsuit filed against a for-profit college and its owners to add new counts alleging that the...more

Congress Members Urge Department of Education to Amend Rules Governing Banking Practices on College Campuses

In a continued effort by federal and state legislators to curb alleged abuse by financial institutions on college campuses, several members of Congress sent a letter to the Department of Education expressing their support for...more

Illinois AG seeks leave to add Dodd-Frank UDAAP count to complaint against for-profit college

Lisa Madigan, Illinois Attorney General, recently filed a motion in a state court lawsuit against a for-profit college and its owners and operators seeking leave to further amend her complaint to add new counts alleging that...more

For-profit education company sued by CFPB seeks dismissal of complaint

ITT Educational Services, the defendant in the CFPB’s first enforcement action against a for-profit education company, has filed a motion seeking dismissal of the CFPB’s complaint. Filed this past February in an Indiana...more

Non-Courtside Madness? Resume Fraud Costs Manhattan Coach Steve Masiello From Securing South Florida Coaching Job

Our attention on the NCAA college basketball tournament was temporarily diverted by the non-courtside drama that played out this week when the University of South Florida revoked its head coaching offer to Steve Masiello...more

Illinois Supreme Court Upholds Dismissal Of School District’s Claim Against Its Architect

The Illinois Supreme Court recently issued a decision in Gillespie Community Unit School District No. 7 v. Wight & Company that upholds the dismissal of the District’s claim of fraudulent misrepresentation against its...more

Police Concern About Public Safety Sufficient To Justify Shutdown Of Speech At School

In a lawsuit arising out of a well-publicized incident in West Michigan, Agema v. City of Allegan involved a lawsuit by former Michigan State Representative David Agema and others against the City of Allegan and others...more

First Circuit Enforces D&O Policy’s Known Circumstances Exclusion

The First Circuit Court of Appeals recently held that a “Known Circumstances Exclusion” in an insured school’s D&O policy barred coverage for an underlying action involving misrepresentations in soliciting a donation....more

First Circuit Holds Prior Knowledge Exclusion Applicable

In its recent decision in Clark School for Creative Learning, Inc. v. Philadelphia Indemnity Ins. Co., 2013 U.S. App. LEXIS 21568 (1st Cir. Oct. 23, 2013), the United States Court of Appeals for the First Circuit, applying...more

Are Misstatements In A Form 10-K Actionable By The California Attorney General?

Last week, the California Attorney General Kamala D. Harris announced that she had filed a complaint for civil penalties, permanent injunction and other equitable relief against Corinthian Colleges and three of its school...more

West Clark Community Schools Cease and Desist Order— SEC Enforcement of Rule 15c2-12

On July 29, 2013, the SEC entered a pair of Cease and Desist Orders against West Clark Community Schools (the “School District”) and Citi Securities, the underwriter of certain municipal bonds issued by the School District...more

SEC Fraud Charges Against School District Demonstrate Increased Focus on Disclosure Compliance by Municipal Issuers

On July 29, 2013, the Securities and Exchange Commission announced that it had charged an Indiana school district and its underwriter with securities fraud for falsely stating in a 2007 offering document that the issuer was...more

7th Circuit Determines Qui Tam False Claims Act Case Against ITT Should Go Forward

This week we look at the 7th Circuit's decision in Leveski v. ITT Educational Services, Inc., in which the court reinstated a False Claims Act qui tam action against ITT and removed the imposition of $395,000 in sanctions...more

Alabama Legislative Update – Week 6: Legislators Focus on Education, Tort Reform and Health Care

In a week that was dominated by events surrounding the Alabama Accountability Act, several significant pieces of legislation still moved through – or died in – the State House....more

Weekly Brief: 78% of Law Schools Ignore ABA Rule [Video]

March 7 (Bloomberg Law) -- Bloomberg Law's Lee Pacchia runs through the legal news for the week. New testimony at the BP oil spill trial in New Orleans focuses on a key safety test taken shortly before the accident. Also,...more

Weekly Brief: DOJ Memo Details Justification For Killing US Citizens  [Video]

Feb. 7 (Bloomberg Law) -- Bloomberg Law's Lee Pacchia runs through the legal news for the week. A confidential memo leaked from the Department of Justice details the legal rationale for the extrajudicial killing of American...more

Appellate Court rules that for-profit technical school is not automatically exempt from New Jersey Consumer Fraud Act under...

The New Jersey Appellate Court holds that a for-profit technical school cannot invoke the "learned professional" exception to the New Jersey Consumer Fraud Act. This decision exemplifies that career training schools are not...more

School Board Members Properly Petitioned Court to Oust Board Member from Office

A recent Illinois Appellate Court case reaffirms the requirements that school board members not hold conflicting positions during their service on the board, and highlights the method by which board members may be removed...more

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