| For such a massive college with over 397,000 | | | | on the suit including any settlement terms under |
| students and over 200 campus locations, you would | | | | consideration. It is vital to note though that Fed. Title IV |
| expect the University of Phoenix to have some | | | | loans are the backbone of the money stream for the |
| lawsuits filed against them. This is just a list of some of | | | | entire for-profit education industry and that Apollo |
| those suits. | | | | derives over 77% of their revenue from these loans. |
| 1. Latrish Elaine Tarhini was an enrollment advisor at | | | | Accordingly, this may be a huge problem for the |
| the Houston campus of the University of Phoenix. She | | | | University of Phoenix. |
| was told that she would not get a raise due to her | | | | 4. In Jan 2008, Apollo Group Inc. Lost a stockholder |
| filling a pregnancy discrimination charge against the | | | | securities fraud lawsuit saying damages of as much |
| Apollo Group Inc. ( parent of the University of Phoenix | | | | as $277.5 million. The jury agreed with the speculators |
| ). Basically the University of Phoenix violated the | | | | that Apollo together with previous head honcho Todd |
| retaliation statutes of the Civil Rights Act of 1964. The | | | | Nelson and CFO Kenda Gonzales, mislead |
| company settled the suit for $32,500 in June, 2009. | | | | shareholders by not disclosing a February 2004 U.S. |
| 2. The Apollo Group Inc. (parent of the University of | | | | Education Department report. The department |
| Phoenix ) is presently in settlement talks to bring a six | | | | charged the Phoenix-based company of violating a |
| year old Fed whistle-blower legal action over its hiring | | | | federal ban on students based on the number of |
| tactics to an end. The trial is ready to start shortly in | | | | scholars they enroll. It seems like the Apollo Group was |
| the U.S. District Court in Sacramento and basically at | | | | successful at getting this call over-turned in August of |
| the heart of it is the fact the University of Phoenix paid | | | | 2008. We are not sure what the present standing of |
| recruiters based mostly on the quantity of scholars | | | | the suit is today. |
| they enroll. Apparently ensuing in all types of | | | | 5. In November 2008, Apollo Group, Inc. Settled a |
| aggressive hiring tactics. The court action was brought | | | | federal suit alleging discrimination against non-Mormon |
| by 2 University of Phoenix counselors back in 2003. | | | | workers at the University of Phoenix on the web. This |
| The settlement is estimated to be in the $40 million to | | | | class-action court action was filed by 52 former |
| $250 million range. | | | | enrollment counselors who charged that members of |
| 3. In December 2008, 3 previous students at the | | | | the Church of Jesus Christ of Latter-day Saints were |
| University of Phoenix were looking for class-action | | | | favored in sales leads, promotions, schooling waivers, |
| status for a Fed. legal action which accuses the | | | | and more at the faculty. The settlement was |
| college of improperly saying its record on loan defaults. | | | | reportedly for $1.89 million. |
| According to the suit the University of Phoenix | | | | If you're aware of all other suits that impact the |
| allegedly pays off federal student loans and then goes | | | | University of Phoenix or any other school or varsity, |
| after the students themselves to collect the amounts | | | | please let us know. We are interested in following all |
| due under more onerous terms than the the federal | | | | lawsuits especially those concerning online colleges and |
| loans. By doing this, the college impedes those loans | | | | universities. It is inevitable that these for-profit institutions |
| from being considered in its official default rate. | | | | will experience some suits given how massive they |
| Colleges with high default rates can be barred from | | | | have grown to be. |
| federal student-loan programs or face other | | | | . |
| restrictions. We are not able to get any further details | | | | |