October 28, 2015 by I Am Not A Loan
Federal consumer regulators on Wednesday won a major court battle against Corinthian Colleges Inc., the former national for-profit chain that entered bankruptcy this year amid claims of defrauding students.
A federal judge in Illinois ruled that Corinthian “engaged in deceptive practices” by misleading students about their career prospects, according to documents obtained by The Wall Street Journal. The federal Consumer Financial Protection Bureau had filed the lawsuit. Corinthian had declined to contest the charges, and Wednesday’s ruling was a default judgment.
Judge Gary Feinerman of the U.S. District Court for the Northern District of Illinois, in his ruling, said: Corinthian violated a federal “prohibition on deceptive acts and practices by its misrepresentations and omissions regarding prospective students’ career opportunities.”
The judge ordered Corinthian to pay $531 million in damages to former students. However, the damages are unlikely to be paid since Corinthian was dissolved in bankruptcy and its assets have been distributed according to a liquidation plan, a U.S. government official said.
You can read the full article here, on the Wall Street Journal's website.