For-profit college company sued by CA for alleged deceptive ads
SAN FRANCISCO -- California Attorney General Kamala Harris sued Corinthian Colleges Inc., the parent company of a chain of career-preparation colleges, in San Francisco Superior Court Thursday for alleged false advertising and marketing about its job placement rates.
The lawsuit alleges that Corinthian, a for-profit company based in Santa Ana, deliberately targets low-income, vulnerable Californians with deceptive and untrue advertisements about its job placement success.
"CCI is selling these expensive programs to students throughout California, many of whom head single-parent families and have annual incomes that are near the federal poverty line," the lawsuit alleges.
The defendants in the lawsuit are both Corinthian and several of its subsidiaries, including Heald College, which is based in San Francisco and operates in Concord, Hayward, San Jose and other Northern California cities.
The colleges offer career training in areas such as business, medical assisting, criminal justice and transportation.
Harris said that about 26,000 of the company's 80,000 students nationwide are Californians.
The lawsuit is based on claims of unfair business practices toward students as well securities fraud in connection with alleged deception of investors.
It also alleges that Corinthian is violating a 2007 injunction issued in Los Angeles County Superior Court that prohibited the company from making false or misleading statements about its program and job placement record.
The suit asks for a new injunction, civil financial penalties and restitution to stock purchasers.
A spokesman for Corinthian was not immediately available for comment.
kamala harris, lawsuit, jobs, concord, hayward, san jose, california news
- Malaysia says jet's disappearance was deliberate
- Woman found dead in Castro Valley home was shot 48 min ago
- CCSF protestors make voices heard at City Hall
- Investigators finally getting look at Mission Bay fire
- Man fatally stuck by Caltrain near Atherton station 22 min ago
- Police arrest woman in connection with shooting
- Crews control one-alarm house fire in Antioch 41 min ago
- I-TEAM: Small park, big problems
- Vehicle runs over gas line, hits SJ DMV building
- Uber announces new insurance policy for drivers
- Costco recalls cases of freeze-dried fruit
- Photos: Meet the stars where you live
- roundup: AltCar Expo; Motorcyclist killed
- weather: Bay Area weather forecast for Saturday
Most Viewed StoriesMost Viewed Photos