Law firm Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates and former U.S. Attorney Patrick Fitzgerald were named as independent monitors of Corinthian Colleges Inc.’s wind-down of its operations.
The U.S. Department of Education selected Fitzgerald; Corinthian is responsible for paying him.
The Santa Ana-based for-profit school operator will sell schools and programs and close campuses as part of an agreement with the education department.
The deal called for independent monitoring.
Fitzgerald has led several high profile cases including the investigations of two former Illinois Governors, Skadden is a nationally known litigation firm.
Fitzgerald has access to Corinthian’s operations including personnel, budgets and sales practices, the department said.
He also oversees Corinthian’s “draw down” over the next six months of $35 million in financial aid to keep operating and its interactions with the students who may be eligible for full refunds if they withdraw from a Corinthian school.
Separately California congresswoman Maxine Waters (D-LA) on Thursday said any Corinthian student should be able to withdraw with a refund. Currently the deal only offers the full refunds to students who withdraw from schools that are being closed, not that are being sold.
Corinthian has about 72,000 students at 107 campuses in the United States and Canada.
In early trading Friday the company’s stock was up 4.4% to a market cap of $18.3 million.
