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University of Phoenix Lawsuits

Updated on October 23, 2013

University of Phoenix Lawsuits

The University of Phoenix has been avoiding the court room at all costs' over the past several years and admitted no wrongdoing on any of the legal cases thrown at them but they still settled the lawsuits out of court. Well, if you admit to no wrongdoing, why not go to court and tell the judge that you committed nothing wrong and prove that you are innocent? Tell us University of Phoenix, why can't you prove in court that you are innocent? Why are you avoiding the court room and just paying out settlements and saying you have done nothing wrong? Because you are GUILTY!

Here is the Wikipedia information regarding the University of Phoenix (www.phoenix.edu) and all the legal battles this fraudulent company has lost. This information is taken directly from:

http://en.wikipedia.org/wiki/University_of_Phoenix

LEGAL AND REGULATORY ACTIONS

A 2003 federal whistle-blower/false claims lawsuit, filed by two former UOPX admission counselors, alleged the university improperly obtained hundreds of millions of dollars in financial aid by paying its admission counselors solely based on the number of students they enrolled in violation of the Higher Education Act.[22][21][53][54][55] The school counters that the lawsuit is a legal manipulation by two former university employees over a matter previously resolved with the U.S. Department of Education,[56] however the Department does not share that view.[57] UOPX's position was rejected by the Ninth Circuit Court of Appeals in its 2006 published opinion, which reversed the Eastern California U.S. District Court's 2004 decision dismissing the lawsuit.[58][59] The lawsuit is now set for trial on March 9, 2010.[60] An October 4, 2009 Arizona Republic article reported that UOPX's parent company is engaged in talks to settle the lawsuit though no potential terms have been discussed.[52]

In 2004, as a result of the filing of the false claims lawsuit, the Department of Education performed a program review and alleged that UOPX had violated Higher Education Act provisions that prohibit distributing financial incentives to admission representatives, had pressured its recruiters to enroll students and had concealed the practices from the Department.[61] UOPX disputed the findings but paid a record $9.8 million dollar fine as part of a settlement where it admitted no wrongdoing and was not required to return any financial aid funds.[62][63][64][65] UOPX's President states that though recruiters are paid a commission based on the number of students enrolled, their compensation is not based solely on that criteria, which makes the practice legal.[23]

In January 2008, the university’s parent company, Apollo Group, Inc. was found guilty of misleading stockholders when it withheld the results of the 2004 Program Review cited above. A jury awarded $280 million to shareholders.[66][67] However, U.S. District Judge James Teilborg overturned the verdict in August 2008, ruling that though UOPX “misled the market", investors failed to prove that they were damaged by UOPX's actions.[68][69] The plaintiffs have appealed the judges decision.[70]

In 2000, government auditors found UOPX did not meet conditions for including study group meetings as instructional hours thus their courses fell short of the minimum time required for federal aid programs. The university paid a $6 million fine as part of a settlement wherein they admitted no wrongdoing. However, in 2002, the Department of Education relaxed requirements covering instructional hours.[22][21][71]

The U.S. Department of Education ordered the university to pay $650,000 for failing to promptly refund loans and grants for students who withdrew.[21]

In December 2008, three former University of Phoenix students filed a class-action complaint against UOPX alleging that when the students withdrew, UOPX returned their entire loan money to the lender and then sought repayment from them.[72] The alleged motivation was to "artificially deflate the cohort default rates", which impact a school's eligibility to receive Title IV funding.[73][74] Apollo asserts that the students claim is that Apollo "improperly returned the entire amount of the students' federal loan funds to the lender."[75] On January 21, 2009, plaintiffs voluntarily dismissed the lawsuit without prejudice to refiling.[76]

The university has had various labor and discrimination issues. It paid $3.5 million to settle alleged violation of overtime compensation provision with the Department of Labor.[77][78] In November 2008 it agreed to pay $1.89 million to settle allegations by the EEOC for alleged religious discrimination favoring Mormon enrollment counselors.[79] In settling these matters, University of Phoenix did not admit any liability or wrongdoing.

Here's something interesting I found on Wikipedia regarding the University of Phoenix. The web site states this type of university is a "private, for-profit" university. If you type in Harvard University, Wikipedia states that Harvard is a "private" university only. Again, clearly the University of Phoenix is in it only for the profits. They want to be the one and only billion dollar for-profit private university but it looks like the lawsuits are slowly adding up. With more lawsuits being filed against the university each year, it is only a matter of time until the University of Phoenix is closed for good by court order.

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