EDMC @$$hats get to settle an $11BILLION lawsuit for only .8909%! Less than 1% of the asking price! I currently owe just above $125k -if the DOE gave a shit, they would allow students to settle for the same. This would make my payout somewhere around $1112.5, which would still be a ripoff!!!
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I'm an adjunct that's down from 4 classes/quarter a year ago to 1 (our campus was exempt from the 3-2-3-2 requirement for adjuncts for quite awhile but is now required to adhere to it). I noticed strong LinkedIn activity from my bosses in the last few days. I suspect that even they feel like their days are numbered.
It is official. The lawsuit is settled for 95.5 Million on all suits including the 39 states that filed.
There is no rhyme or reason you will ever hear as adjunct. I expect after the holidays so they can hold on to as many staff and students as possible for the wind down.
They will say that they are doing a teach out, but that will amount to a few months or couple of terms before so many bail that they can't maintain.
Once the announcement of this lawsuit goes viral, shit is going to hit the fan because of the unsatisfactory outcome that the DOE has enforced.
How many do you think will be laid off, and will this happen before or after the holidays?
Both Westwood College and Corinthian colleges had similar lawsuits and neither endured. The gospel of FRAUD will stick with them and gradually they will turn to dust. I have worked at all three schools and this school is no exception. Watch the students enrollment drop over the holidays heavy and then enrollment will just be a few drops of blood.
The company has a 125 million loan available to them whenever they want it. 100 million isn't going to stop the business.
So a 100 million dollar settlement won't bankrupt the company?
What kind of insurance covers 100 million of fraud? You can buy that?
Had/has
What insurance company had over 100 million to toss around?
813 here... Was curious because even though EDMC is getting out of admitting guilt, I could see insurance companies claiming that this is the result of fraud (they've had 4+ years to prepare this argument) to get out of paying 100 million.
They have insurance to cover the 100 million but this can't be good news. More money spent on lawyers and marketing - not on educators, equipment, training or curriculumn.
They have the money but this will lead to more layoffs.
Here's my question about the settlement: Does the institution even HAVE 100 million to pay for this settlement and if not, will it send EDMC into bankruptcy?
Here is my take--and I'm never wrong about the gutless slime that EDMC hires and the worthless subhumans who work for EDMC. I'll bet that absolutely none of you pieces of garbage are willing to publish the names and home addresses emails and telephone numbers (not just your usual half arsed efforts the real stuff) of former EDMC employees who were involved in the recruiting--not a one of you have the guts do you!
From the preliminary report, they will be able to pay 100 million, not have to admit any guilt in the matter, and be done with the problem. This is a win for them if so, since students cannot get refunds if there is no proof of fraud or guilt (they will have to sue and take their chances) and the original claim of fraud was over a billion. In Fed whistleblower cases of this sort, they could ask for tripple damages, so 100 million wouldl be a sweet deal. Still, nothing is finalized yet