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Controversy

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The following section was added today (ref tag converted to naked link).

A class action was filed against The Art Institute Of Houston in 1999 by 145 former students. The students alleged the were defrauded by The Art Institutes and EDMC Inc over the transferability of credits. Under the terms of the suit, the students, many of whom were honor students, alleged that while seeking to gain a quality education and a bona fide degree they were lured into enrollment at the Art Institute of Houston and encouraged to matriculate often under an albatross of hefty student loans. The law suit charged that the school knowingly mislead these pupils to believe they were receiving a valuable post-secondary education as well as skills which would lead to subsequent employment.
The lawsuit was settled by EDMC Inc for an undisclosed amount. The Art Institute of Houston is now accredited by the Commission on Colleges of the Southern Association of Colleges and Schools.[1]

The major problem is the last two sentences. The source mentions only that the case kept class-action status and that the students were not forced to separate arbitration; it says nothing about a settlement. It also does not mention accreditation by SACS. It also embellishes on what the source says about the reason of the suit. Quoting the Business Wire story, "In the suit, the students allege they were defrauded by their school and its parent companies, the Art Institutes International, Inc. and Education Management Corporation, Inc. The students allege that the school misrepresented the quality of its instructors, equipment and the degrees offered."

I think this should go back into the article once the resolution of the case is sourced and once it's rewritten in a more neutral tone. —C.Fred (talk) 04:12, 27 April 2009 (UTC)[reply]

The lawsuit material was rewritten to reflect the confidential settlement. Sometimes suits settle because the plaintiffs to not have a viable case and they can avoid adverse cost bills & attorney fees through a settlement. As it was written, the sentence implied that EDMC did something wrong and therefore settled. We do not have verification to that effect.--S. Rich (talk) 16:43, 29 November 2010 (UTC)[reply]
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