A California firm accused of running "phantom" programs for radiologic technologists will give prospective students more information on its plans to shut down most of its campuses in the state under an agreement with the state's attorney general (AG).
Corinthian Colleges last week agreed to disclose to potential students that it is shutting down its campuses in California as the firm winds down operations, according to an article in the San Jose Mercury News. Corinthian had been under severe pressure from state and federal authorities, who were investigating the quality of education provided.
California Attorney General Kamala Harris filed suit against Corinthian in October 2013, charging that the firm was advertising educational programs that it did not actually provide for radiologic technologists and other professions. Corinthian allegedly ran ads promoting training programs in ultrasound, x-ray, radiology, and dialysis at its California campuses, when, in fact, the institution did not offer any of these programs, according to a release filed by the attorney general's office.
At the time of the suit, Corinthian ran 111 campuses in North America, including 24 Everest, Heald, and WyoTech campuses. The company ran into dire financial straits in June after the federal government temporarily shut down financial aid to Corinthian students.
In a June 19 filing with the U.S. Securities and Exchange Commission (SEC), Corinthian notified investors of its serious financial problems, and later that month it signed an agreement with the U.S. Department of Education in which it agreed to shut down or sell its campuses to third parties.
However, Harris charged that Corinthian continued to actively solicit new students without disclosing its financial situation. With this week's agreement, Corinthian has agreed to more broadly disclose its financial status, according to the San Jose Mercury News article.
