Federal Officials Say Settlement Reached with DeVry over Misleading Ads
October 13 2016 - 2:20PM
Dow Jones News
The Obama administration said on Thursday it reached a
settlement with DeVry Education Group Inc. over claims that the
major for-profit chain of schools ran misleading
advertisements.
As part of the agreement, DeVry will maintain its ability to
collect federal grants and loans from students to cover the
school's tuition. Such federal aid comprises the bulk of DeVry's
revenue.
The deal also requires DeVry to post an "irrevocable" five-year
letter of credit of at least $68.4 million, the Education
Department said.
"Today's agreement settles only the issue of a single,
unsubstantiated claim and does not prohibit the Department from
imposing future enforcement actions against DeVry in the event of
additional findings," the Education Department said in a
statement.
Write to Josh Mitchell at joshua.mitchell@wsj.com
(END) Dow Jones Newswires
October 13, 2016 14:05 ET (18:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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