DeVry Sale Won’t Affect Defrauded Students’ Lawsuit
AUSTIN — Adtalem Global Education Inc.’s recently announced sale of for-profit college DeVry University to Cogswell Education—an arm of Palmer Ventures—will not affect the Texas lawsuit filed by The Carlson Law Firm attorneys in Texas on behalf of former DeVry students. According to a press release from Adtalem, Cogswell Education, LLC assumed full ownership of DeVry on Dec. 11.
Students who enrolled at the for-profit giant were duped by claims that DeVry graduates enjoyed enviably high employment rates and top salaries when compared to graduates of other schools. These students fell prey to an aggressive and deceptive marketing scheme, which the Federal Trade Commission characterized as false and not substantiated by adequate data.
Since the January 2018 filing of the lawsuit, 33 additional Texas DeVry graduates have joined the lawsuit action—nearing the total number of plaintiffs to 100. Notably, the acquisition of DeVry University by Cogswell Education will not affect their claims. The case is ongoing in federal court in San Antonio.
In 2016 DeVry entered a settlement agreement with the Federal Trade Commission after a two-year investigation by the federal agency into the school’s marketing practices revealed serious irregularities. As a result of this enforcement action, many defrauded DeVry students received a refund that averaged some $280. However, the DeVry students in the Texas case have incurred tens of thousands of dollars in student loan debt and other damages. The Texas case aims to cover the gaps that the FTC’s enforcement action failed to address, such as student loan forgiveness.
The DeVry sale came under scrutiny from media outlets earlier this year evoking concerns over venture capitalist Bradley Palmer’s acquiring the chain with little scrutiny from the current administration. Reports questioned Palmer’s ability to run a chain more than 60 times the size of the California school he already owned.
Attorneys representing DeVry clients John Fabry and Luis Munoz are available for comment.
With 12 locations across the state, The Carlson Law Firm is a Texas-based personal injury firm committed to providing exceptional legal services to our communities. We handle a variety of personal injury cases, including auto accidents, trucking accidents, motorcycle injuries, and workplace injuries, as well as medical malpractice, defective products, nursing home neglect, offshore injuries, wrongful death and much more.
The ongoing case is Rangel et al. v. Adtalem Global Education, Inc., et al.; Case 5:18-cv-00082-DAE.
Media Contact: Kazia Conway
- Written by Kazia Conway