Education Management Corp. suit settled for $3.4 million
Education Management Corp. agreed to pay $3.4 million to settle civil claims that one of its for-profit universities misled students pursuing doctorate of education degrees in counseling psychology about their employment prospects after graduation.
The Downtown corporation's settlement with the Colorado Attorney General's Office includes paying $2.9 million to reimburse 66 students of EDMC-run Argosy University in Denver for their tuition costs.
EDMC operates 20 Argosy universities in 13 states, but not in Pennsylvania. Its total of 110 schools in 32 states and Canada includes the Art Institute of Pittsburgh.
“Our investigation revealed a pattern of Argosy recklessly launching doctoral degree programs without substantiating or supporting that they led to the advertised outcomes,” a violation of Colorado law, said Deputy Attorney General Jan Zavislan in a statement.
The attorney general investigated EDMC because the office received student complaints starting in 2007 that Argosy was not seeking accreditation of its doctorate program by the American Psychological Association, although the university said it was.
Without the program accreditation, students found it hard to secure internships or become licensed psychologists.
The settlement did not require EDMC to admit liability, but it would impose a $1 million penalty if the company in the next three years violates the terms of the agreement.
“At Argosy, university student achievement is our top priority, and we are committed to constant improvement,” EDMC spokesman Chris Hardman said in an emailed statement.
The Colorado case is not the first time EDMC, which is the nation's second-biggest operator of for-profit post-secondary schools, has faced a government lawsuit.
The company faces lawsuits by the federal government and 11 states seeking the return of more than $11 billion paid in federal student aid over several years. The lawsuits claim EDMC improperly paid recruiters based on the number of students they enrolled. The company denies the allegations.
Thomas Olson is a Trib Total Media staff writer. He can be reached at 412-320-7854 or at firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Home price gains slow for 6th-straight month
- Tech giants lead rush for profits in foreign countries
- Groups stand against ‘sub-minimum’ wage for workers with disabilities
- Consumer confidence jumps to 90.9 in July
- China investigates Microsoft in monopoly case
- Market in neutral, awaiting economic news
- Fed to keep cards close to the vest
- Hiring in shale industry shifts to engineering, construction workers
- GNC revenue, sales drop, but vitamin retailer says plan in place
- U.S. Steel’s 2Q loss beats analysts’ estimates
- Jimmy Dean moves beyond breakfast