Document:

MinnPost.com, 11/11/10

Summary:

Article about he recent set of lawsuits filed against private sector schools by share holders. In Capella's case, as in others, the lawsuits do not allege specific misdeeds, but rather accuse the companies of issuing "materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose that the Company had been engaging in abusive and fraudulent recruiting and financial aid lending practices, thereby increasing Capella’s student enrollment and revenues." The suits hope to force disclosure, which could lead them to specific allegations of force a settlement to avoid expense.

Posted
AuthorKeith Blakeman