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Calif. AG files lawsuit against for-profit college

By Bryan Cohen | Oct 11, 2013

SAN FRANCISCO (Legal Newsline) - California Attorney General Kamala Harris filed a lawsuit Thursday against Corinthian Colleges Inc. and its subsidiaries for allegedly engaging in false advertising as part of a predatory scheme.

CCI and its subsidiaries operate WyoTech, Heald and Everest colleges. CCI allegedly intentionally targeted vulnerable, low-income Californians through deceptive advertising campaigns that misrepresented job placement rates and school programs. CCI executives allegedly harmed students, investors and taxpayers by knowingly misrepresenting job placement rates to investors and accrediting agencies.

"The predatory scheme devised by executives at Corinthian Colleges Inc. is unconscionable," Harris said. "Designed to rake in profits and mislead investors, they targeted some of our state's most particularly vulnerable people-including low income, single mothers and veterans returning from combat. My office will continue our investigation into the for-profit college industry and will hold accountable those responsible for these illegal, exploitative practices."

CCI allegedly advertised job placement rates as high as 100 percent for certain programs, when in some instances, there was no evidence that a single student obtained a job during the specified time frame. The company also allegedly included official Coast Guard, Marine Corps, Air Force, Navy and Army seals in mailings and on websites without authorization and in violation of state law.

The lawsuit seeks civil penalties, a permanent injunction and other equitable relief.

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