The news just keeps getter worse for the Apollo Group and its flagship University of Phoenix. The state of Oregon has announced that it’s suing the company for $US 10 million for securities fraud.
The state’s treasurer and attorney general claim the University of Phoenix prepared misleading financial statements. The for-profit college allegedly overstated its revenue between 2007 and 2010 by failing to account for losses that were a result of student withdrawals from classes. That practice, the state says, cost the Oregon Public Employee Retirement Fund roughly $10 million.
Oregon’s Attorney General John Kroger put it bluntly: “Companies that cook their books will have to answer to Oregon in court.”