A California judge ruled on Friday that Corinthian Colleges Inc. does not have to warn prospective students of its bleak financial condition,
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A California judge ruled on Friday that Corinthian Colleges Inc. does not have to warn prospective students of its bleak financial condition, the Los Angeles Times reports. The ruling was made in response to a request for a restraining order filed by Attorney General Kamala D. Harris of California, who alleged that the company was advertising its colleges in a “false and misleading” manner, given that it had agreed to either sell or close all 107 of them.
Last week Corinthian and the U.S. Education Department announced that the company would sell 95 of its campuses and gradually draw down activity at the other 12. That was precipitated by the department’s June announcement that it would temporarily restrict financial-aid payments to Corinthian, a development that caused the company to warn that it might not be able to keep its doors open.
Ms. Harris’s office sought the restraining order last week, demanding that Corinthian disclose details of its financial situation to prospective students. On Friday a judge denied the request for an expedited order and scheduled a hearing on the issue for August 13.
The request for a restraining order was part of a pending lawsuit filed by Ms. Harris in 2013 against the for-profit educator, which is based in Santa Ana, Calif. The lawsuit accuses Corinthian of lying about job-placement rates in advertisements and promoting programs it did not offer, among other things.
A Corinthian spokesman called the judge’s decision “a victory for our students and for due process.”
In the meantime, Minnesota’s Office of Higher Education ordered Corinthian to cease enrolling Minnesota students and to take steps to ensure that currently enrolled students in the state are able to complete their programs, The Star Tribune reported.
