Education Management settles legal dispute with San Francisco


Education Management (EDMC +3.4%) enters into an agreement with the City of San Francisco to resolve a legal dispute over a number of issues tied to recruiting and job placement reporting.

As part of the deal reached wit the city, the company will pay $4.4M while not admitting any liability.

SEC Form 8-K

Comments (4)
  • Moneycurious
    , contributor
    Comments (21) | Send Message
     
    This is the future for EDMC. The last jurisdiction to settle with EDMC was Colorado for $3.3 million. Exactly this same mess of perfidious and predatory behaviors, is how typically EDMC targets poor minorities or veterans.

     

    Three weeks prior to the Colorado settlement Ed West (CEO) said that the company would not settle any lawsuits and that in fact it would not even set aside funds for lawsuits. So West made these comments all the while knowing that the check was being drawn up for the settlement. This defiant deception has become a hallmark of EDMC business practice.

     

    EDMC has been the weight that capsized the for profit education sector. The first Art Institute lawsuit to be settled was in Houston in 2006. Pleasantly put, it was also for misrepresentation to and baiting of students. The gigantic DOJ $11 Billion suit may in deed be dismissed. It will be refiled in parcels some of which may include criminal indictments. The discovery in this lawsuit has involved thousands of statements by former employees and students and hundreds of depositions. The groundswell has become a massive social media and on line petition effort by as many as ten thousand enraged former students.

     

    The San Francisco lawsuit is one of many.

     

    There has been some astute analysis of EDMC on Seeking Alpha. All of it points to two things. There is a serious question about just how EDMC will meet its 2016 covenants. Moreover EDMC has a legacy of deception that it clearly has no intention of correcting. Rather than address its issues it dispatches fleets of exorbitantly paid lobbyists in the hope that it can continue its role as a delivery system for federal loans.

     

    Unfortunately the education that EDMC delivers is largely in the form of hard learned lessons in betrayal of trust. The greater mystery is just where are the profits?
    17 Jun 2014, 04:06 PM Reply Like
  • youngolf
    , contributor
    Comments (119) | Send Message
     
    Wake up. CEO's always defend the company the head up. Your 'defiant deception' language tells what you are up to.
    17 Jun 2014, 11:16 PM Reply Like
  • youngolf
    , contributor
    Comments (119) | Send Message
     
    Precisely, RealityCheck1...'Non-P... have been using taxpayer money to 'fund their operating expenses' for decades while designing useless degrees (I seem to recall Home Management being a major for women!). I know of students taking 'Use of the Library' for credits! All the while the schools Major in Sports and spending millions recruiting high school players and hiring coaches (and paying off coaches they fired) as well as paying millions in incentive bonuses to school presidents while whining about funding and annually raising tuition....with no regard for real academic progress of their semi-pro athletes. Senator Harkin is obviously using his office against For-Profits on a witch-hunt on behalf of Non-Profits who are scrounging for more students! EVERY organization can be accused of malpractice today. No one is innocent. To single out For-Profits who have many success stories in graduates from the 'other side of town' is disgusting. Pundits like moneycurious are likely attempting to manipulate stock prices and starving law firms are searching for more unscrupulous ways to make money without working.
    17 Jun 2014, 11:13 PM Reply Like
  • youngolf
    , contributor
    Comments (119) | Send Message
     
    A major problem with the For-Profits?....they can't give you a team to yell for, or pass tickets to the senators!!
    19 Jun 2014, 07:50 AM Reply Like
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