An ailing Orange County for-profit college company must do more to warn students about its dire financial situation under an agreement reached this week with California Atty. Gen.
Facing federal financial sanctions,
Under an agreement reached Thursday, Corinthian must now post disclosures online about the pending sale of its schools and clearly tell current students that schools will be sold.
The company must also remove advertising references describing the company's schools as "stable and permanent" institutions that offer "lifetime" career services. And within two weeks, Corinthian must provide disclosures on its military-related websites that its California schools are no longer eligible to receive GI Bill benefits.
The new consumer information builds on several other disclosures required by the
Harris' office had filed for an injunction in San Francisco Superior Court that would have forced greater disclosure, but the matter was delayed until August.
After this week's agreement with Corinthian, the attorney general's office will pull the request for an injunction.
Harris sued Corinthian last fall, alleging the company engaged in a wide range of misleading recruiting and job placement tactics. That case is ongoing.
A Corinthian spokesman, Kent Jenkins, noted that Corinthian already requires new students to read and sign a form acknowledging the potential sale of the school and other "investigative and oversight activities."
Corinthian, which operates schools under the Everest, WyoTech and Heald brands, has been in the cross hairs of federal and state investigators for more than a year amid allegations that the company manipulated job placement rates and other academic data.