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Students of the for-profit chain would have nearly $600 million wiped out under a preliminary settlement approved by a federal bankruptcy judge on January 24, 2018. The settlement acknowledges that students who attended the college between 2006 and 2016 have a $1.5 billion claim against ITT, which closed abruptly in 2016. The settlement is expected to be finalized in June.
The team representing the student class in this pro bono matter includes Partners Melissa M. Root, Catherine L. Steege and Brian Hauck; they are serving with Harvard University’s Project on Predatory Student Lending.
“ITT perpetrated a massive fraud on students, lying to them about everything from tuition costs to their own accreditation status, and left thousands of students in massive debt that they never should have had,” said Eileen Connor, a director of litigation at the Project on Predatory Student Lending, in a press release. “This landmark settlement provides important and necessary relief to those students. ITT’s estate has now cancelled the debts of its students because of ITT’s fraudulent actions, and it’s time for the Department of Education and all private holders of ITT debt to do the same.”