Bottom Line: Government Investigations and Suits Against For-Profit Colleges: the Grid

Following the money in higher education.

Government Investigations and Suits Against For-Profit Colleges: the Grid

February 28, 2014

With the announcement on Wednesday by New Mexico’s attorney general, Gary King, that his office was suing ITT Educational Services over alleged misrepresentations to nursing students, a total of 22 state attorneys general are now known to be investigating or suing for-profit-college companies.

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Several federal agencies, including the Department of Justice, the Securities and Exchange Commission, the Consumer Financial Protection Bureau (which also announced a lawsuit against ITT this week), and the Federal Trade Commission, have also taken such actions.

Below is a grid showing which of the publicly traded college companies are facing actions or inquiries by which agencies.

It does not include cases that have been resolved recently. In December, for example, the Education Management Corporation agreed to pay $3.3-millon to settle a civil complaint by the Colorado attorney general that the company’s Argosy University had misled students about their job prospects.

Correction (2/28/2014, 6:15 p.m.): This chart originally reported incorrectly that the Delaware attorney general was investigating the Apollo Education Group, parent of the University of Phoenix. That investigation has been closed. The chart has been updated to reflect this correction.

Correction (3/3/2014, 11:20 a.m.): This chart originally listed Kaplan University (“Kaplan U.”). The parent company, Kaplan Inc., should have been listed. The chart has been updated with “Kaplan” to reflect this correction.

Correction (4/4/2014, 5:30 p.m.): This chart originally reported incorrectly that the Wisconsin attorney general was investigating ITT Educational Services. The chart has been updated to reflect this correction.