School settles federal lawsuit for $7.8M

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Michigan

October 7, 2009

Anonymous The Record Eagle Wed Oct 07, 2009, 07:51 AM EDT

DETROIT (AP) -- A federal judge has approved a $7.8 million settlement in a class-action lawsuit filed against the Academy of Court Reporting by former students at its suburban Detroit campus.

The students had claimed the Ohio-based school promised them associate's degrees, something it can't do under Michigan law.

Under the settlement approved Tuesday by U.S. District Court Judge David Lawson in Detroit, the school also will provide millions of dollars in tuition discounts for students wishing to return to class.

Court records show at least 1,281 students at the school's Clawson campus in Oakland County filed claims and will get a payment based on how much they had paid for their classes. Their attorneys will receive $2.5 million of the $7.8 million in settlement funds.

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