For-Profit College Front Group Sues Government

Judge's gavel - for profit college
Judge's gavel - for profit college

A front group representing for-profit colleges owned by Education Management Corp. and others has sued the federal government for "negligence and malpractice" following the release of a highly critical report by the General Accounting Office, the investigative arm of Congress.

The Coalition for Educational Success says the GAO's report, released in August 2010 and then revised in November, is error-ridden, biased and was conducted by inexperienced investigators, among other criticisms. The lawsuit, filed Wednesday, Feb. 2, is the second against the government by for-profit education industry lobbyists in a month.

The Association of Private Sector Colleges, which claims more than 1,500 member institutions, filed a lawsuit in late January against the U.S. Department of Education protesting new federal regulations that would diminish for-profit schools' access to federal grants. Those regulations also include a number of consumer protections, including increased authority for the Education Department to act against unscrupulous behavior.