California’s $1.1 Billion Judgment Against Corinthian Colleges

Corinthian College was once a massive for-profit college chain with more than 100,000 students across more than 100 campuses nation-wide. In California, Corinthian ran Everest College, Heald, and WyoTech. Most of the college’s revenues came from federal funding and between 2010 and 2016, its students took out about $3.5 billion in federal student loans.

Corinthian and its practices courted controversy, as more than 100 federal lawsuits and 21 state attorney generals investigations all targeted the college’s recruiting techniques, false and misleading advertising, high tuition, and lack of job prospects following graduation. In 2014, the Consumer Financial Protection Bureau filed a lawsuit claiming that Corinthian had engaged in unlawful predatory lending. In its announcement, the CFPB alleged that:

“Corinthian lured tens of thousands of students to take out private loans to cover expensive tuition costs by advertising bogus job prospects and career services. Corinthian then used illegal debt collection tactics to strong-arm students into paying back those loans while still in school.”

In 2015, facing dramatically reduced enrollment, many lawsuits, and government regulation, Corinthian Colleges declared bankruptcy and shut down.

Things got worse for the college in March 2016, when the state of California obtained a $1.1 billion judgment due to their “predatory and unlawful practices.” California Attorney General Kamala Harris stated that “For years, Corinthian profited off the backs of poor people – now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct.” Among the court’s findings were that Corinthian:

• Made false, misleading, and erroneous representations about the job placement rates of its graduates;
• Advertised technical degrees and programs that it did not even offer;
• Illegally used the official seals of the Army, Navy, Air Force, Marines, and Coast Guard in its advertisement;
• Engaged in illegal debt collection; and
• Misrepresented that its credit hours were transferable, when they were not.

Unfortunately for defrauded students, this judgment may have come too late to help them as Corinthian has declared bankruptcy and only had $19 million in declared assets. In contrast, if you attended DeVry in the last five years, it is not too late for you to seek relief. Despite that DeVry settled with the FTC for $100 million, the university continues to operate and has actually thrived in the stock market since Donald Trump’s election as President.

Since 2008, attorneys Ari Moss and Jeremy Bollinger at Moss Bollinger have fought for consumers and employees against big businesses. If you have attended DeVry in the last five years, you may be entitled to damages. We are actively investigating claims against DeVry and can assist you. Call us today at (310) 982-2291 for a free consultation or reach us online.