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Mass. AG sues Corinthian Colleges

By Bryan Cohen | Apr 7, 2014

BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley filed a lawsuit on Thursday against a for-profit school that allegedly misrepresented its training programs and job placement rates to increase profits.

Corinthian Colleges Inc. and Corinthian Schools Inc., the operators of the Boston area-based Everest Institute, also allegedly pushed students into high-interest subprime loans, leaving many students unemployed and unable to pay their debts.

"We allege that this for-profit school aggressively recruited and misled students by falsely promising high quality, successful training programs, and instead left them with exorbitant student loan debt and without proper training or a well-paying career," Coakley said. "Our office will continue to investigate the for-profit school industry as we continue to see students and taxpayers suffer the consequences of high default rates, inadequate training, and mounting debt."

Corinthian allegedly focused on recruiting new students regardless of their qualifications or whether the students were likely to complete or benefit from the school's programs. Corinthian allegedly used deceptive marketing, including inflated job placement rates, and high pressure enrollment tactics, including hiring recruitment agents to make hundreds of weekly calls to prospective students.

The lawsuit seeks restitution to affected students, injunctive relief to prohibit deceptive practices in the future and the payment of civil penalties and fees.

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