Santa Ana-based college operator Corinthian Colleges Inc. said on Wednesday its faces another lawsuit over accreditation.
Some 80 former and current students at Corinthian’s Florida Metropolitan University charge that the company didn’t disclose the campus’ lack of accreditation by the Commission on Colleges of the Southern Association of Colleges and Schools.
The lack of accreditation prevented the students from transferring credits to other schools, according to a report on the lawsuit from Reuters.
The Florida campus is accredited by the Accrediting Council for Independent Colleges and Schools, Corinthian said. That accreditation is disclosed to students upon enrollment, the company said.
Corinthian called the suit “without merit” and plans to seek arbitration instead of litigation.
The suit is the fourth of its kind against Corinthian in the past year.
Corinthian has had its share of regulatory issues in the past year. The company said it’s working with the federal Education Department on its financial aid program at its Bryman campus in San Jose.
The department cut financial aid funding to the campus last year and later restored it.
Earlier this year, the Securities and Exchange Commission said it ended its probe of Corinthian Colleges without recommending any enforcement action.
In September, Corinthain said the SEC was conducting an informal investigation into its financial projections, results and correspondence with analysts for the 12 months ended June 30 and the quarter ending Sept. 30.
