Judge Halts ITT Tech Lawsuits
A bankruptcy judge on Wednesday temporarily barred regulators from continuing lawsuits against the defunct ITT Educational Services, according to The Wall Street Journal.
The U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the state of New Mexico each have launched litigation against the for-profit parent company of ITT Technical Institutes for allegedly defrauding students and investors in connection with a private loan program. Massachusetts is also suing ITT for allegedly misleading students with false job-placement statistics.
ITT Tech closed its campuses in September after being sanctioned by the U.S. Department of Education. On Wednesday, the judge said regulators would have to wait to move forward with litigation until after the bankruptcy proceedings or at least until Dec. 21.