A class-action lawsuit filed by former Art Institute students alleges the school misrepresented its degree programs, graduation rates, and job placement rates to lure prospective students. The complaint alleges that Art Institutes made false promises and failed to disclose graduation and job placement rates, resulting in a loss of approximately $100 million in student loans. If you want to know more about the lawsuit, read on. It could affect you. There are many important things to consider before filing.
The Art Institutes lawsuit cites misleading advertising to lure students.
The school advertised false graduation rates, claimed a 100% job placement rate, and claimed it was accredited for licensure. This fraudulent activity may qualify as a Borrower’s Defense. According to the press release, the Art Institutes were deceiving consumers about the benefits of their programs. Regardless of the truth, the case provides an opportunity for victims to get compensated for their losses.
The lawsuit alleges that The Art Institutes knowingly deceived students by making false promises. The school advertised false graduation rates, job placement rates, and licensure. This deception was used as a basis for a Borrower’s Defense Claim. The press release can be found here. This lawsuit is a great example of why it’s important to know the details of the case before filing it.
The Art Institutes is not the only institution facing a lawsuit.
The company has been sued for violating federal consumer protection laws. The Art Institutes voluntarily settled the lawsuit by agreeing to pay $95.5 million and forgive nearly $103 million of student loan debt. Despite the settlement, the ArtInstitutes never admitted wrongdoing. The case is a good example of how not to settle a consumer complaint and how not to handle pending litigation.
Besides the lawsuit itself, the Art Institutes also had other legal actions. The first was filed in 2014, and the second was filed in 2015. The Art Institutes was sued by the federal government over the company’s fraudulent recruitment strategies. The lawsuit was settled in 2015 with the Educational Management Corporation agreeing to pay nearly $103 million in student loan debts. Although the ArtInstitutes did not admit wrongdoing, the settlement allowed former students to obtain a refund of their loans.
The Art Institutes has a history of illegal marketing practices.
The company has repeatedly lied about its education and its costs to attract students. This is illegal and may be used in your lawsuit. If you have been misled by the Art Institutes, your claim may be valid. But it’s unlikely that the ArtInstitutes will settle your case. Instead, it is likely to pay you back more money than you borrowed.
While the lawsuit is still ongoing, it has been settled with a whistleblower. The lawsuit alleged that the Art Institutes made false statements about the benefits of their education to lure students. As a result, the school is now paying almost $200 million to its victims in damages. This means that the Art Institutes are now responsible for deceiving their former students and the public. The case has led to many changes in the Art Institutes’ policies.
In the past, The Art Institutes had 50 locations in the United States.
As of 2015, they only have eight campuses left. In the meantime, the remaining campuses of The Art Institutes are in danger of closing in the next few months. Classes were discontinued without prior notice. In addition to this, The Arts Institutes are also responsible for misleading consumers. Its students were led to believe that their tuition was worth much more than it actually did.
The Art Institutes’ lawsuit was filed against Educational Management Corporation, the second-largest for-profit college in the country. The company was accused of violating federal law, but despite its efforts, the Art Institutes did not admit wrongdoing. A settlement between the parties in the lawsuit led to an agreement where the corporation will pay $95.5 million to students and forgive $103 million in student loan debt. The case is the result of deceit and misrepresentation.