Newsbreak: For-Profit Schools under Fire [Video]
Lawyers.com Editorial Director Betsy Kim reports on several legal cases, marking the start of this year’s back-to-school and football seasons.
The industry of for-profit universities is under greater scrutiny, accused of making big money while deceiving students who get into substantial debt, paying for useless degrees.
New York Attorney General Eric Schneiderman announced a $10 million settlement with Chicago-based Career Education Corporation. The company inflated job placement rates, and left students with huge debts and few job offers.
A $9.25 million fund will reimburse students who were misled into believing their degrees would help them find better jobs. The students graduated from New York campuses of the Sanford-Brown Institute and Briarcliff College and New York residents, who graduated from online programs with American Intercontinental University and Colorado Technical University.
Schneiderman also filed a $40 million lawsuit against Donald Trump for “Trump University.” The attorney general called the lessons a how to get rich “elaborate bait-and-switch” designed to get people “to spend thousands of dollars they couldn’t afford for lessons they never got.”
Sherry Melton, who worked as a nurse at Vanderbilt University Medical Center for 13 years is suing the hospital. She alleges, the center fired her in violation of the Family and Medical Leave Act. The Nashville institution had announced plans to trim its budget by $250 million and cut 1,000 jobs.
Melton was fired while on approved medical leave. Her manager claims it was for poor job performance. But the complaint notes she received a favorable performance review shortly before her termination.
Finally, although the NFL settled the lawsuit over concussion-related brain injuries of former football players for $765 million, the league faces another high profile lawsuit. Ten former players including five Hall of Famers say the league used their images to sell NFL film products, without their authorization and consent. They filed a federal lawsuit in New Jersey, accusing the league of unfairly violating their rights of publicity. The NFL settled a similar case in March before a Minnesota federal judge.
Keep on checking out Lawyers.com to stay updated on the latest legal news throughout the year.