$820 million to affected students, $350 million in civil penalties
MarketWatch reports that a California judge has ordered the now-defunct Corinthian Colleges for-profit college chain to pay over $1 billion against claims the company misled investors and students. Unfortunately, as the journal notes, former students will probably not see any of that money, as the company filed for bankruptcy last year and declared its total assets were less than $20 million.
There is possible good news for the chain’s former students, however, as the judgment could potentially work as evidence of misconduct by Corinthian that students could employ in dealings with the government to get their loans forgiven under the idea that the school violated the law.
In a separate statement, California Attorney General Kamala Harris noted that her office would do “everything in our power” to ensure former students have access to all available forms of relief. Harris’ office originally filed the lawsuit against Corinthian in 2013.
MarketWatch noted that Corinthian’s bankruptcy “came after years of accusations from Harris and others that Corinthian used inflated graduation and job placement rates to lure students.”
Read the full story on MarketWatch.com. You can also learn more about Lieff Cabraser’s work on cases involving similar claims of fraud against the government relating to student loans and the misconduct of for-profit college institutions.