Education Management Corporation to pay $95.5 million in settlement

Major for-profit college operator Education Management Corp, which owns 3 campuses in South Florida, including The Art Institutes, has paid out $95.5 million to settle a lawsuit with the U.S. Department of Justice over its unlawful recruitment tactics. The deal also includes $6.5 million in loan forgiveness for Florida students.

The U.S. Department of Justice announced the settlement at a news conference on Monday morning.

The settlement would resolve accusations against the company under the consumer protection laws of 39 states and the District of Columbia. Two former Education Management employees whose complaints initiated the suit, are also set to receive some of the proceeds.

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