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The Department of Education announced on December 19, 2016 that access to federal student loans for students attending the Charlotte School of Law would end on December 31, 2016 as a direct result of the law school’s failure to meet multiple admission and curriculum standards. According to several sources, students attending Charlotte School of Law received more than $50 million in financial assistance in the 2015-2016 school year. Without such aid, many of the school’s more than 700 students could not afford the $60,000 annual tuition.
On December 22, 2016, the North Carolina law firms of Shipman & Wright, LLP and Martin & Jones, PLLC filed a proposed class action lawsuit in North Carolina federal court on behalf of certain students who paid to attend the for-profit Charlotte School of Law. The complaint alleges that through both affirmative statements made by Charlotte School of Law and nondisclosure of highly relevant information, current and prospective students were misled by the school and suffered harm.
The complaint alleges that in July 2016 Charlotte School of Law was ordered to disclose their noncompliance with certain American Bar Association standards. The complaint further alleges that Charlotte School of Law did not make required disclosures, and as a result, students were harmed. Some students are left with substantial educational debt; some of which is guaranteed by the taxpayers in the event of student defaults.
The legal claims in the lawsuit are in large part based upon findings of the American Bar Association and the Department of Education claiming certain acts and omissions of law school management. For those students who were wrongfully harmed, counsel intends to zealously pursue their damages claims.