14 Jul The Top 5 Lawsuits Won Against Major Education Companies in the Last Decade

Examining Legal Victories in the Last Decade: A Closer Look at the Top 5 Lawsuits Won Against Leading Education Companies in the Past Decade

The education industry plays a critical role in shaping our society, and major education companies are entrusted with providing quality services to students and educators alike. However, over the past decade, several significant lawsuits have shed light on the misconduct and questionable practices of some of these companies. 

In this article, we’ll explore the top five lawsuits that have been won against major education companies in the last decade. These legal victories have not only held these companies accountable for their actions but have also paved the way for positive change within the education sector.

Triumph in Court: Prevailing Lawsuits Against Prominent Education Companies

In recent years, the education industry has witnessed significant legal battles that have resulted in triumphs for justice and accountability. These lawsuits, brought against prominent education companies, have shed light on misconduct, unethical practices, and deceptive behaviors that have long plagued this sector. Through the determination and perseverance of individuals, regulatory bodies, and advocacy groups, these prevailing lawsuits have brought about substantial changes, holding education companies accountable for their actions. The following five case studies explore some of the landmark legal victories against major education companies, highlighting the impact they have had on the industry and the broader implications for students, educators, and society as a whole.

ITT Technical Institute (ITT Tech):

ITT Technical Institute, a for-profit college, faced a lawsuit in 2016 brought by the U.S. Department of Education. In the case against ITT Tech, the U.S. Department of Education accused the for-profit college of engaging in fraudulent practices. ITT Tech allegedly misled students about job placement rates and the transferability of credits, leading to financial harm and educational setbacks. The lawsuit resulted in a ban on enrolling new students who relied on federal financial aid. This decision put a significant strain on ITT Tech’s financial stability, eventually leading to its declaration of bankruptcy in 2017. The case shed light on the deceptive practices of for-profit colleges and the need for stricter regulations to protect students.

Corinthian Colleges:

Corinthian Colleges, once one of the largest for-profit college chains, faced multiple lawsuits and investigations regarding predatory lending, false job placement rates, and deceptive marketing practices. The Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges in 2015 for its predatory lending practices, ultimately resulting in a judgment of $531 million against the company. This ruling set a precedent in holding for-profit colleges accountable for misleading students and engaging in predatory behavior. The lawsuit brought attention to the exploitative practices within the for-profit education sector and raised awareness of the importance of consumer protection.

DeVry University:

DeVry University, another major for-profit institution, faced a lawsuit by the Federal Trade Commission (FTC) in 2016. The lawsuit alleged that DeVry made deceptive claims about graduate employment outcomes, salary prospects, and the transferability of credits. In settlement agreements reached in 2016 and 2019, DeVry agreed to pay $100 million to compensate students who were misled by their advertisements. This case highlighted the importance of transparent and accurate representation of employment prospects and outcomes to protect students from misleading marketing practices.

University of Phoenix:

The University of Phoenix, a leading for-profit institution, faced multiple lawsuits alleging deceptive marketing practices and false claims regarding job placement rates and accreditation. In 2020, the Federal Trade Commission and the University of Phoenix reached a settlement requiring the university to pay $191 million to resolve the claims. This lawsuit emphasized the need for accurate and transparent information when it comes to educational institutions’ claims about job placement and accreditation.

Navient:

Navient, one of the largest student loan servicers in the United States, has faced numerous lawsuits accusing the company of predatory lending, misallocation of payments, and other unlawful practices. In 2017, the Consumer Financial Protection Bureau sued Navient for allegedly cheating borrowers out of their repayment rights, resulting in a $60 million settlement. This case shed light on the importance of fair and ethical practices in student loan servicing and the need to protect borrowers’ rights. It highlighted the challenges faced by borrowers in navigating the complex student loan system and called for increased transparency and accountability in the industry.

Shaping the Future: How Landmark Lawsuits Reshape the Education Landscape

The top five lawsuits won against major education companies in the last decade have had a profound impact on the education industry. These legal victories have not only exposed misconduct but have also paved the way for accountability, transparency, and positive change. Through these lawsuits, fraudulent practices, predatory behavior, deceptive marketing, and other unethical actions have been brought to light, ensuring that students and educators are better protected.

The legal battles against institutions like ITT Technical Institute, Corinthian Colleges, DeVry University, the University of Phoenix, and Navient have demonstrated the importance of fair and ethical practices within the education sector. They have led to financial settlements, regulatory interventions, and increased awareness of the challenges faced by students and borrowers.

These landmark lawsuits have spurred discussions, reforms, and stricter regulations to prevent future misconduct and protect individuals seeking education. The judgments and settlements have not only provided compensation to those affected but have also sent a clear message that deceptive practices will not be tolerated.

Moreover, these legal victories have raised awareness among students, parents, and the public about the importance of conducting thorough research and exercising caution when selecting educational institutions. They have emphasized the need for accurate and transparent information regarding job placement rates, accreditation, and financial aid options.

The Impact of These Top 5 Legal Victories

The top five lawsuits won against major education companies in the last decade have brought attention to the misconduct and questionable practices within the education industry. These legal victories have held companies accountable for fraudulent practices, predatory lending, deceptive marketing, and other unethical behaviors. They have not only resulted in significant financial settlements but have also sparked discussions and reforms aimed at improving transparency, protecting students’ rights, and promoting responsible practices in the education sector. These lawsuits have played a crucial role in raising awareness and advocating for positive change within the industry, ensuring a more equitable and ethical educational landscape for students.

Empower Yourself with IronFist Legal: Take Action for Education Justice!

At IronFist Legal, we’re dedicated to fighting for justice and accountability in the education industry. If you believe you have been affected by misconduct, deceptive practices, or unfair treatment, now is the time to take action.

Contact IronFist Legal today to discuss your case and explore your legal options. Our experienced team of  contract cancellation experts specialize in education fraud and is ready to guide you through the process, ensuring your voice is heard and your rights are protected.

Together, we can create a better future for education. Let’s hold major education companies accountable for their actions, advocate for student rights, and contribute to a fair and transparent education system. Take the first step towards change by reaching out to IronFist Legal today.

Remember, your voice matters, and with IronFist Legal by your side, you can make a difference in the education landscape.