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Mass. Accuses Corinthian Colleges of Misleading Students to Increase Profits


The Chronicle of Higher Education. April 3, 2014.

The Commonwealth of Massachusetts on Thursday sued Corinthian Colleges Inc., accusing the for-profit higher-education company of misrepresenting job-placement rates and using deceptive marketing practices to increase its enrollments and profits, The Boston Globe reported.

“We allege that this for-profit school aggressively recruited and misled students by falsely promising high-quality, successful training programs, and instead left them with exorbitant student-loan debt and without proper training or a well-paying career,” the state’s attorney general, Martha Coakley, said in a news release. Ms. Coakley is one of several state attorneys general who have recently stepped up their scrutiny of the for-profit sector.

The state’s complaint alleges that Corinthian Colleges and Corinthian Schools Inc., which operate campuses of the Everest Institute, have been deceiving prospective students and the public since 2009.

The company disputed the complaint’s assertions in a written statement, saying that the lawsuit disregarded “substantial, independent evidence” that Corinthian’s two Massachusetts institutions “have a strong record of offering students a quality education and treating them honestly and fairly.”

Corinthian asserted that Ms. Coakley’s office began an investigation into the company three years ago but had not yet produced a complaint from a student who attended either of the institutions.