Dive Brief:
- A company that sells software to help colleges process online applications owed its clients $4.7 million as of June 2013, including $1.2 million that had been owed for more than a year, a former company executive claims.
- The company, Embark, is being sued by Raza Khan, former chief technology officer, who alleges that company officials improperly spent money owed to colleges and lied to the colleges about the reasons for the delays.
- Embark is obligated to pay its client colleges all or most of the application fees it collects, and Khan accuses the company of failing to give the colleges their share of the fees, Inside Higher Ed reported.
Dive Insight:
Inside Higher Ed has the story from New York state court documents that appeared for several days in June on the court’s website and then disappeared when a judge partially sealed the documents, at Embark’s request. Among the clients owed money as of June 2013, when Khan left Embark, was Mount Sinai School of Medicine, with more than $1 million unpaid, according to the lawsuit. The University of Michigan and a graduate program at Harvard University were paid by Embark only after they threatened legal action. The University of California had demanded that Embark pay it $38,589 by June 15, which didn’t happen. Thunderbird School of Global Management is owed $71,000.