Corinthian Colleges Inc. (COCO) said former U.S. Secretary of
Defense and director of the Central Intelligence Agency Leon
Panetta has resigned from the for-profit college operator's board,
a move that comes three months after he rejoined as a director.
Mr. Panetta wrote in a letter to Corinthian's Chairman and Chief
Executive Jack Massimino, which the company disclosed in a
regulatory filing, that he was "struggling with a large number of
commitments" at the time he was asked to rejoin the board and that
these obligations have demanded a bigger time commitment than
anticipated.
"I have come to the difficult conclusion that there is no way I
could do justice to myself and to my role as a board member and
that it would be both unfair to you and Corinthian to think that
under the present circumstances, I could devote the time needed to
effectively serve as a board member," he wrote.
Mr. Panetta had previously served on Corinthian's board from
2008 to 2009 and was reappointed to the board in late April.
"We had looked forward to his continued guidance," Mr. Massimino
said of Mr. Panetta's resignation. "However, we understand that the
demands on his time are extraordinary and wish him success in his
important endeavors."
Last month, Corinthian Colleges said it is under investigation
by the U.S. Securities and Exchange Commission, and has received a
subpoena for records related to recruitment, student-loan defaults
and other matters. Corinthian Colleges has said it plans to
cooperate with the SEC investigation.
The company has previously attracted scrutiny from federal
regulators, including the Education Department, which questioned
its calculation of financial-responsibility measures needed for
eligibility in federal financial aid programs. The for-profit
educator has also been criticized for the high rate of student-loan
default among its students.
Shares closed at $2.54 and were unchanged after hours. The stock
is up 22% over the past three months.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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