WASHINGTON, DC, November 16, 2015 – As part of a multistate agreement reached between 39 states and the District of Columbia, and for-profit education company Education Management Corporation (EDMC), Jenner & Block Partner Thomas J. Perrelli has been appointed an independent settlement administrator to oversee EDMC’s compliance with the settlement’s disclosure and recruiting requirements.
Mr. Perrelli’s three-year appointment as a monitor follows a multistate investigation into alleged violations of consumer protection laws by EDMC and its four education systems, including Argosy University, The Art Institutes, Brown Mackie College and South University. In addition to revising its business practices, EDMC agreed to forgive $102.8 million in outstanding loan debt held by more than 80,000 former students. Mr. Perrelli will issue annual reports on EDMC’s compliance with the settlement.
“Through this settlement, the attorneys general have won EDMC’s commitment to undertake major reforms, and I will make sure that EDMC follows through,” said Mr. Perrelli. “As in my previous monitorships, my goal is not just to measure compliance, but to make sure that the settlement improves the business practices that affect so many students’ lives."
Mr. Perrelli is a nationally recognized litigator who re-joined Jenner & Block in 2012 after serving for three years as Associate Attorney General of the United States, the third highest-ranking official in the US Department of Justice. Among numerous high-level, multi-party negotiations, he led the Government’s efforts to negotiate a $25 billion settlement to resolve claims against financial institutions for servicing of mortgages and negotiated the creation of a $20 billion fund to compensate victims of the Deepwater Horizon oil spill.
As the founder and chair of the firm’s Government Controversies and Public Policy Litigation Practice, Mr. Perrelli represents businesses, governmental entities and their leaders at the intersection of law, business and government regulation. Last year, Mr. Perrelli was appointed as monitor or settlement administrator in two significant matters: 1) a $2.5 billion settlement agreement between the Department of Justice and Citigroup over the sale of mortgage securities and 2) a compliance settlement between Ashford University and its parent company Bridgepoint Education, and the Iowa Attorney General related to recruitment and enrollment practices.