Corinthian Colleges Faces Purported Class Action

Court Alerts

Corinthian Colleges Inc. (COCO) and its Corinthian Schools Inc. unit face a purported class action lawsuit alleging the schools made and continue to make misleading statements regarding their graduates' employment prospects and starting salaries.

The suit against the Santa Ana, Calif., for-profit education provider also charges that Corinthian's statements claiming their programs are approved by the California Department of Education are untrue.

Carnegie Student Loans and SLM Corp.'s (SLM) Sallie Mae Inc. were also named as defendants in the suit.

The lawsuit was filed in Santa Clara Superior Court on behalf of graduates of the Medical Assistant vocational programs offered at Bryman College, now named Everest College.

According to attorney John L. Fallat, who filed the suit, Corinthian settled a class action suit in July over allegations regarding statewide California approval of certain of its programs.

Representatives from Corinthian and Sallie Mae weren't immediately available for comment.

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