Corinthian Colleges Reports Favorable Arbitration Award in Satz Case - Arbitrator Finds in Favor of Company on All Counts
SANTA ANA, CA (SEND2PRESS NEWSWIRE) -- [Original release date July 11, 2005] -- Corinthian Colleges, Inc. (NASDAQ: COCO) has received a favorable arbitration award in the case of Satz vs. Rhodes Colleges, Inc., Corinthian Colleges, Inc., and Florida Metropolitan University. Satz asserted claims on his own behalf and a putative class of similarly situated current and former students in the Company's Florida Metropolitan University ("FMU") campuses in Florida and online.
Satz alleged that FMU concealed the fact that it is not accredited by the Commission on Colleges of the Southern Association of Colleges and Schools ("SACS") and that FMU credits are not transferable to other institutions. The Company responded by presenting multiple written disclosures which plainly informed prospective students of FMU's accreditation and transfer of credit policy.
The arbitrator found for the Company on all counts. The Award on the Company's motion to dismiss stated: "The arbitrator concludes that Satz could not have acted reasonably in enrolling at FMU in reliance on the alleged oral misstatements made to him because they are contradicted by written statements and disclosures that were provided to him and which he acknowledged in writing at the time of entering into the enrollment agreement with FMU. Therefore, the College parties are entitled to an award in their favor on all claims."
The arbitrator also found that Satz breached his agreement with FMU by filing in court rather than seeking arbitration and is therefore responsible to pay FMU's damages associated with compelling the action to arbitration.
"We are up front with our students about accreditation and transfer of credit and we are pleased that the arbitrator agreed," said Jack D. Massimino, Corinthian's chief executive officer. "This frivolous lawsuit had no basis in fact and we are gratified by the arbitrator's decision. We will continue to defend the Company vigorously against similar groundless litigation."
About Corinthian Colleges, Inc.
Corinthian Colleges, Inc. (NASDAQ: COCO) is one of the largest post-secondary education companies in North America, operating 94 colleges in 24 states in the U.S. and 34 colleges and 15 corporate training centers in seven provinces in Canada. The Company's mission is to help students prepare for careers that are in demand or to advance in their chosen career. Corinthian offers diploma programs and master's, bachelor's and associate's degrees in a variety of fields, concentrating on careers in health care, business, criminal justice, transportation maintenance, trades and technology.
Certain statements in this press release may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. The Company intends that all such statements be subject to the "safe-harbor" provisions of that Act. Many important factors may cause the Company's actual results to differ materially from those discussed in any such forward-looking statements, including the risks and uncertainties described in the Company's filings with the U.S. Securities and Exchange Commission. The historical results achieved by the Company are not necessarily indicative of its future prospects. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
THE CONTENT OF THE ABOVE PRESS RELEASE WAS PROVIDED BY THE NEWS SOURCE ("Corinthian Colleges, Inc."), WHO IS SOLELY RESPONSIBLE FOR ITS ACCURACY. FOR QUESTIONS ABOUT THIS STORY CONTACT THE NEWS SOURCE AND NOT THIS WEBSITE.
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