For-Profit School, Investors Reach Deal Over False Stats

Law360, New York (October 28, 2013, 4:26 PM EDT) -- For-profit online school owner Career Education Corp. will receive $20 million from insurers and adopt corporate governance reforms to settle derivative suits alleging that its directors made false statements regarding its student repayment and job placement rates, according to documents filed Friday.

Career Education has been the target of investor suits and a congressional investigation into its student recruitment tactics and loan repayment rates, which have threatened the accreditation of its schools and cost it millions of dollars, according to a motion filed in Illinois federal...
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