News & Analysis as of

For Profit Colleges

Securities Fraud Action Based Upon DeVry University's Representations About Graduate Employment Rates Was Dismissed Because...

by Shearman & Sterling LLP on

On December 6, 2017, the United States District Court for the Northern District of Illinois dismissed a securities fraud lawsuit brought against DeVry Education Group, Inc. and several of its executives (“DeVry”), with leave...more

Blog: California Assembly Recommends Eliminating For-Profit Institutions from Cal Grant Program

by Cooley LLP on

While there are indications that Washington has lessened its antipathy towards for-profit institutions, states continue to go in their own directions. This post focuses on the California Assembly’s recommendation to eliminate...more

FCA Claim of “Phantom Students” Won’t Continue to Haunt College, Says Ninth Circuit

The for-profit education company Kaplan, Inc. recently scored a win when the Court of Appeals for the Ninth Circuit affirmed Kaplan’s summary judgment victory in a decade-long False Claims Act suit. This case shows that while...more

Blog: State Authorization and Licensing: Recent Developments and Trends to Watch

by Cooley LLP on

State authorization requirements, particularly for online education programs, remain in flux even as more states join the state reciprocity compact, known as SARA, which applies to accredited institutions. There are...more

Blog: Assessing Kaplan-Purdue – Revolution or Evolution??

by Cooley LLP on

The announcement that Purdue University, a Big Ten public institution, has agreed to acquire Kaplan University, a 30,000-student for-profit online institution, has sent shock waves across the entire higher education...more

D.C. Circuit Rebukes CFPB in Civil Investigative Demand Enforcement Decision

by Pepper Hamilton LLP on

On April 21, the U.S. Court of Appeals for the District of Columbia Circuit issued an opinion in CFPB v. Accrediting Council for Independent Colleges & Schools, affirming a decision by the D.C. district court to deny...more

What to Expect under Secretary of Education Betsy DeVos

by Jackson Lewis P.C. on

DeVos has a record of promoting charter schools and school vouchers at the K-12 level, but little is known about her priorities for higher education. Her prepared comments and responses during her Senate confirmation hearing...more

D.C. Circuit to hold Feb. 2 argument on CFPB authority to issue CID to college accrediting organization

by Ballard Spahr LLP on

The D.C. Circuit will hear oral argument on February 2, 2017 on the CFPB’s appeal from the D.C. federal district court’s April 2016 ruling that the CFPB exceeded its statutory authority when it issued a CID to the Accrediting...more

[Webinar] The Elimination of Pre-Dispute Arbitration Clauses and the New Repayment Rates for Proprietary Schools - Dec. 8th,12pm...

by Thompson Coburn LLP on

The fourth webinar in our "Decoding the FINAL Borrower Defense Rule" series will examine the ban on pre-dispute arbitration agreements and class action waivers. We’ll discuss the impact of these rules on past and future...more

CFPB enters into consent order with for-profit college owner

by Ballard Spahr LLP on

The CFPB announced that it has entered into a consent order with Bridgepoint Education, Inc., the owner of two for-profit colleges, to settle charges that the company’s representatives engaged in deceptive acts or practices...more

Absolutely no shock Universities being sued over their Plans

by Ary Rosenbaum on

There has been an influx of participant lawsuits against private universities for the 401(k) and/or 403(b) plans they sponsor for their employees. That’s like shooting fish in a barrel....more

[Webinar] The Proposed Repayment Rate for Proprietary Schools (Proposed Borrower Defense Rule Series) - September 14th, 12:00pm...

by Thompson Coburn LLP on

Our final webinar will focus on the new repayment rate the Department proposes for proprietary institutions. We will examine in detail the methodology the Department suggests it would use, and the penalty associated with a...more

District Court Further Limits Application of Professional Services Exclusion

One of the most heavily-litigated exclusions in modern insurance coverage practice was the subject of a recent district court decision involving allegedly misleading marketing by for-profit colleges. Exclusions for claims or...more

Proposed Borrower Defense Rules May Significantly Impact Higher Education Institutions

by Fisher Phillips on

The US Department of Education (ED) recently released a significant Notice of Proposed Rulemaking which could impact most institutions of higher education. In a nutshell, the proposed regulations are designed to provide...more

U.S. Department of Education Outlines Loan Relief Pathway for Certain Students

by Carlton Fields on

On March 11, the U.S. Department of Education (DOE) released an advanced proposal of rulemaking that would establish a more "borrower-friendly process" for students seeking loan relief triggered by unscrupulous conduct by...more

New Jersey Becomes Third Recent State Court to Refuse To Enforce Delegation Clause

In a decision that appears intentionally controversial, the Supreme Court of New Jersey yesterday refused to enforce the delegation clause in a for-profit college’s enrollment agreement in a 5-1 opinion. Morgan v. Sanford...more

Hot topics for state attorneys general

by Dentons on

The role of state attorneys general (AGs) as an investigative and enforcement powerhouse for consumer protection and antitrust matters presents challenges and opportunities for corporate entities in all industries. By...more

Financial Services Weekly News - April 2016 #4

by Goodwin on

Regulatory Developments - Federal Banking Regulators Propose Net Stable Funding (Liquidity) Ratio - The Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation...more

CFPB Suffers First Official CID Challenge

by Morrison & Foerster LLP on

On April 21, 2016, Judge Richard J. Leon of the United States District Court for the District of Columbia ruled on the first judicial challenge to the Consumer Financial Protection Bureau’s (“CFPB,” or “Bureau”) authority to...more

CFPB Receives Strategy Lesson—Court Holds it Overreached by Investigating For-Profit School Accreditation

by Burr & Forman on

The CFPB received a lesson in the importance of specificity on April 21st when the United States District Court for the District of Columbia’s Judge Richard J. Leon found that it overreached in its attempt to enforce a Civil...more

Federal Court: CFPB Overstepped Jurisdiction in Issuing CID to For-Profit Colleges Accreditor

by Holland & Knight LLP on

Judge Richard J. Leon of the U.S. District Court for the District of Columbia on April 21, 2016, ruled that the Consumer Financial Protection Bureau (CFPB) did not have authority to issue a Civil Investigation Demand (CID) to...more

CFPB, “Please”: Judge Rebuffs CFPB’s Attempt to Compel Documents Regarding For-Profit College Accreditation

by Kelley Drye & Warren LLP on

Last Thursday, a federal district court judge in D.C. denied the Consumer Financial Protection Bureau’s (CFPB) attempt to compel documents from the Accrediting Council for Independent Colleges and Schools (ACICS). Rejecting...more

CFPB Cannot Force For-Profit College Group to Comply With Investigative Demand

by BakerHostetler on

On April 21, the United States District Court for the District of Columbia ruled that due to a lack of authority under existing consumer protection laws, the Consumer Financial Protection Bureau (“CFPB”) cannot require a...more

CFPB lacked authority to issue CID issued to college accrediting organization, D.C. federal district court rules

by Ballard Spahr LLP on

The D.C. federal district court has ruled that the CFPB exceeded its statutory authority when it issued a CID to the Accrediting Council for Independent Colleges and Schools (ACICS) in August 2015....more

Education Management Corporation Settles Significant FCA Claims

by Dorsey & Whitney LLP on

Education Management Corporation (EDMC), a Pittsburgh-based company that operates for-profit educational institutions, has agreed to pay $96 million in what attorneys involved in the case claim to be the largest settlement...more

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