Back to school

15 Dec 2016 By

DeVry is paying $100 mln to settle fraud accusations under a crackdown by the Obama administration. For-profit colleges can expect looser oversight when the founder of Trump U. takes office. DeVry’s post-election stock surge suggests investors are discounting regulatory risk.

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For-profit DeVry University agreed on Dec. 15 to settle with the U.S. Federal Trade Commission for $100 million over deceptive advertising. The college had been accused of falsely claiming that 90 percent of graduates found jobs in their field within six months of graduating and that they earned 15 percent more on average than similar graduates of other schools. DeVry will forgive $50.6 million in debt owed by students for tuition and fees and pay $49.4 million to those harmed by the ads.

DeVry shares rallied more than 2 percent in New York afternoon trading following the news of the settlement.

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