The sale of DeVry University won’t affect the lawsuits it is facing, announced the Carlson Law Firm attorneys who are representing former students alleging the school of fraud.
Last week, DeVry’s parent corporation, Adtalem Global Education, sold the university and its Keller Graduate School of Management to Cogswell Education LLC.
“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,” the law firm said in a release.
The students sued the university in July for violating the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) and fraud.
The case alleges that the for-profit giant engaged in deceptive marketing practices to lure prospective students by severely inflating the success rate of job placements and earnings of graduates through an aggressive marketing scheme grounded on “deceptive” data and “flawed” methodologies.
In 2016, the FTC filed a lawsuit against DeVry after a two-year investigation into its deceptive marketing scheme. According to the FTC, DeVry falsified the numbers underlying its “90 percent employment within six months” claims, by counting students already employed prior to enrolling at DeVry, as well as students underemployed outside their field of study and later settled the suit in 2017 for a reported $100 million.