Investor Accuses DeVry Of Student Loan Deceptions

Law360, New York (March 14, 2011, 2:38 PM EDT) -- A DeVry Inc. shareholder accused the for-profit education company's board of directors Friday in Delaware state court of covering up deceptive recruiting and financial aid lending practices, sparking a regulatory crackdown and a tanking stock price.

The board knew about the shortcomings in its recruiter policies and profited from an inflated stock price, yet its actions have now left DeVry threatened by increased government scrutiny on federal loans and grants, its chief source of income, according to allegations in a complaint filed in the Court of...
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