DeVry Education Group Inc (NYSE:DV) has settled with the U.S. Department of Education regarding claims that the institution’s ads were misleading.
The claims accused DeVry University – which is a subsidiary of the Education Group – of creating ads that included unproven job placement claims surrounding the university’s graduates.
The institution used these alleged facts in recruitment and advertising pieces to attract potential students. The move comes soon after ITT closed as the government cracks down on for-profit institutions.
U.S. Secretary of Education John B. King Jr. noted that students should accept enrollment into an institution under legitimate claims considering how much time and money they put into joining these institutions.
One such claim that DeVry University used was that 90% of its graduates got a job in their field of study—this allegedly applied to everyone who graduated from the institution since 1975.
Federal Student Aid examined this information and could not find any truth behind it. The institution is also facing a lawsuit against it, which it is hoping to settle with the Federal Trade Commission (FTC).
The company will have to revise its graduation rates, job placement opportunities in the chosen field of study of graduates, and claims surrounding how much money graduates would make in comparison to other universities.
The settlement that took place today only takes care of one claim and does not absolve DeVry of future claims surrounding its advertising and recruitment methods.
DV shares surged 1% Thursday.
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