EDMC loses federal funding if they go bankrupt. Bankruptcy is very unlikely. The government has to do something but it will be another cut not the final wound to the company.
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I dont understand, dont you clear all your debt in a bankruptcy? If they hired a professional CEO that's done this before, the surly they plan to be around after the fact.
With any signs of guilt it opens doors for more lawsuits. The DOJ is in a place they don't want to be because they want students to pay their loans but the fraud on the side of EDMC is blatant. It has to be more than a slap on the wrist but EDMC insurance can take the blow. They really let this run on for too long. The new EDMC CEO has a background in taking businesses through bankruptcy. I can't see how EDMC has longer than a couple of years left as a business - if that. They let go all of their faculty - adjuncts can do fine: sometimes even better than FT - but there hasn't been any investment in the quality of the product they are selling. The schools have gone from potential - to bad - to worse - to criminal.
I think if they settle which looks likely, the DOJ will regret this. That school will spawn new micro versions scattered across the US with such a loose affiliation they will be unable to be sued again as a single entity. This will allow them to create even more corrupt methodology for profit.
13 states have not agreed and 2 of the original plaintiffs not on board? That sounds like a lot further away then a hair of making a settlement. It's too bad, I with the lawsuit would have gone through and exposed all the evil spirits in the den of inequity.
I can't wait to see the ball drop.
Won't be revealed for weeks. Executives cleaning offices in Pittsburgh today.
No Goldmans Sachs to protect them...this will be bad
My prediction is that edmc will get a slap on the wrist then sell off what it can. The damage is done.
@693. Boy, you said a moutjful and sort of summed up the endless chatter an conjecture that abounds here. Everyone involved in this EDMC mess will not see a swan song but a wimper in the end.
It will go away quietly. Nothing will change and politicians will get rich from this. Poor students will get screwed over as usual. Edmc motto ,if your stupid enough to believe us and sign up then you deserve what you get.
My prediction...Pain! Actually nothing is going to happen so no point in anyone predicting.