Attorneys for the defendants have asked the court to discuss the case, arguing it falls far short of the standards needed to warrant a full-blown trial.
The deals with former ITT CEO Kevin Modany and Chief Financial Officer Kevin Fitzpatrick were reached days before trial and include more than financial settlements.
The Carmel-based, for-profit educator began liquidation proceedings Friday after closing 136 technical schools, leaving over 35,000 students stranded in one of the largest college shutdowns in U.S. history.
ITT Educational Services Inc., the 70-year-old for-profit college operator that shut down its 136 technical schools last week, has hired advisers to liquidate its assets, according to one of the firms brought in to handle the sales.
The Carmel-based for-profit educator, which last week shut down all 136 of its ITT Technical Institute campuses in 38 states, said it will “cease all operations” on Friday.
Two employees who were terminated Tuesday as part of mass layoff by ITT Educational Services have filed a lawsuit claiming the Carmel-based firm violated federal law by failing to provide 60-days notice. The suit seeks class-action status for as many as 8,000 employees.
The decision is a potential death blow to Carmel-based ITT, which derives most of its revenue from federal loans and grants. Its stock was halted Thursday after shares fell 35 percent.
Carmel-based for-profit college operator ITT Educational Services Inc. has received a brief reprieve from its accreditor, which has delayed making a decision that could potentially devastate the embattled company.
Without the Accrediting Council for Independent Colleges & Schools, Carmel-based ITT Educational, one of the largest publicly traded for-profit colleges in the country, could lose access to federal funding for student loans.
ITT Educational Services, the embattled Carmel-based operator of for-profit colleges, has fired its chief administrative and legal officer after less than two years on the job.
Carmel-based ITT Educational Services Inc. on Friday reported a smaller quarterly profit and shrinking revenue amid dwindling student enrollment at its ITT Technical Institute campuses.
ITT lawyers are zeroing in on cleaning up the legal quagmire—and they’re starting to have success. Without admitting liability, ITT in November reached agreements to settle securities lawsuits in Indiana and New York for a total of $29.5 million, with $25 million to be paid from the company’s insurance coverage.
The Obama administration on Monday placed additional restrictions on how ITT Educational Services Inc. uses federal student loans, moving the Carmel-based operator of for-profit colleges one step closer to losing access to federal funds.
Shares of ITT Educational Services nearly doubled in value Friday morning after the company reported a 2014 profit more than three times higher than analysts expected and said its CEO would stay on for another three months.
ITT Educational CEO Kevin Modany and Chief Financial Officer Daniel Fitzpatrick allegedly “engineered a campaign of deception and half-truths” to hide from investors the extent of losses ITT was suffering from student loan programs, the SEC said Tuesday morning.
Investors warmed to news that student enrollment during the spring and summer fell less than expected and that ITT has the cash on hand to get through recent troubles caused by student loan losses.
For-profit college ITT Educational Services Inc., already under pressure from the U.S. Education Department, is facing stricter terms from lenders that could put its operations at risk.
Carmel-based ITT Educational Services Inc. announced late Monday afternoon that CEO Kevin Modany planned to resign within six months. The struggling for-profit education firm has drawn scrutiny from government officials for its marketing and lending practices.
