Judge Tanya Walton Pratt late last month granted ITT’s motion for attorney’s fees and sanctions against Mississippi attorney Timothy Matusheski, as well as two law firms that worked with him on the case—Motley Rice LLC in Los Angeles and Plews Shadley Racher & Braun LLP in Indianapolis.
For-profit U.S. colleges, including Carmel-based ITT Educational Services Inc., would be barred from spending federal taxpayer money on advertising, marketing and recruiting under a Senate bill targeting the education-based businesses.
For-profit college operators such as Carmel-based ITT Educational Services Inc.would lose a financial incentive to enroll soldiers and veterans under U.S. Senate and House bills aimed at curbing what sponsors call aggressive marketing of subpar programs.
The Carmel-based operator of for-profit colleges earned $76 million in the quarter compared with $97.5 million in the same quarter of 2010. Revenue fell 10 percent.
For-profit colleges like Carmel-based ITT Educational Services would be forced to rely less on federal money under a bill aimed at curbing the marketing of degrees to soldiers and veterans.
The national two-year default rate rose to 8.8 percent last year, from 7 percent in fiscal 2008, according to the Department of Education. Driving the increase was an especially sharp increase among students who borrow from the government to attend for-profit colleges.
In the second quarter, the Carmel-based operator of for-profit colleges saw enrollment drop 19.9 percent and profit sink 17.7 percent. But the company posted strong earnings per share by continuing to buy back shares.
The Obama administration gave for-profit colleges more time to comply with rules that will cut off federal aid to institutions whose students struggle the most to repay their government loans.
Shares of for-profit education companies—including Carmel-based ITT Educational Services Inc.—ended higher on Tuesday as a William Blair analyst said a long-awaited federal "gainful employment" rule likely won't hurt vocational school chains as much as investors think.
The ultimate test of whether buybacks are good deals for shareholders hinges on whether the price paid for the stock proves over time to have been a bargain or inflated.
The Carmel-based for-profit educator still will pay its top executives bonuses, but they’ll no longer be tied to school enrollment, the company said Tuesday in a proxy filing.
Shares of ITT Educational Services Inc. rose the most in a year Thursday after the for-profit educator reported a fourth-quarter profit that beat analysts’ estimates.
Carmel-based ITT Educational Services Inc.’s management team will get special cash bonuses if they remain with the company until the end of June, ITT disclosed in a regulatory filing last week.
Twenty for-profit colleges—led by Carmel-based ITT Educational Services—reaped $521 million in U.S. taxpayer funds in 2010 by recruiting armed-services members and veterans through misleading marketing, according to a Congressional report released Thursday.