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Mass. AG Says Ch. 7 Won't Save For-Profit School From Suit

Law360 (September 13, 2018, 7:55 PM EDT) -- The Massachusetts Attorney General's Office told a Delaware bankruptcy judge on Thursday that federal protections in Education Management Corp.'s Chapter 7 should not prevent the state from proceeding with a lawsuit against one of its for-profit schools seeking damages on behalf of students.

At a hearing in front of U.S. Bankruptcy Judge Laurie Selber Silverstein, Assistant Attorney General Michael Sugar argued the state's lawsuit against The New England Institute of Art LLC and Education Management Corp. is exempt from an automatic stay put in place when...
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