Dive Brief:
- Daymar College, a for-profit chain that once had nine campuses in Kentucky, is in line to settle a class action lawsuit brought by former students.
- The Courier-Journal reports the proposed settlement calls for Daymar to pay almost $1.8 million, which will largely be split among students who attended the college between 2007 and 2011.
- Another element of the consent decree is the creation of a “Know Before You Go” pamphlet that Daymar would have to distribute to prospective students saying it is unlikely Daymar credits will be accepted at other schools.
Dive Insight:
Kentucky Attorney General Jack Conway originally opened an investigation into Daymar College’s operating practices in 2008, filing a lawsuit in 2011. A number of private lawsuits have been aimed at the college by former students. The attorney general’s lawsuit alleged Daymar made thousands of violations to the state’s consumer protection law by misleading prospective students, providing a subpar education, and cheating them out of federal financial aid, among other things. The original lawsuit asked for $10 million from the college but, according to The Courier-Journal, plaintiff attorneys urged their clients to accept the proposed deal because Daymar won’t be able to pay more.