The State of Texas, along with 47 other states and Washington D.C. are suing the Career Education Corporation (CEC); American InterContinental University, Inc (AIU); and Colorado Technical University, Inc. (CTU).
The lawsuit alleges CEC did not comply with state consumer protection laws, particularly in respect to student recruitment and enrolling practices for CEC.
The lawsuit states that CEC:
- misled students about the total costs of enrollment at CEC institutions and misled them about the transferability of credits into and out of CEC to other institutions
- misrepresented the programs they offer and the potential to get jobs in the fields desired by prospective students, including failing to adequately disclose that certain programs lack the necessary program accreditation, which can negatively affect a student's ability to obtain a license or job.
- engaged in unfair and deceptive practices in calculating job placement rates, giving students an inaccurate impression of the job opportunities CEC graduates receive
CEC denies these allegations, as well as any wrongdoing or liability of any kind.
You can read the full lawsuit below:
