PHOENIX – A class-action lawsuit was initiated against Grand Canyon University’s for-profit entity, Grand Canyon Education Inc. (GCE), by former doctoral students alleging deceptive marketing practices regarding the cost of their degrees. The lawsuit claims that marketing tactics led students to believe that pursuing doctoral degrees would be more affordable than the actual costs incurred.

Allegations of Deceptive Marketing

Attorneys representing the plaintiffs argue that GCE utilized misleading marketing materials and recruitment strategies to conceal the true expenses associated with obtaining a doctoral degree from GCU. They contend that these practices were intentionally designed to deceive prospective students, painting a false picture of affordability and misrepresenting the total costs involved.

Complex Allegations

The lawsuit further accuses GCU and GCE of operating in a manner akin to a racketeering scheme under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This claim suggests a systematic effort to manipulate information about educational costs, portraying the university’s offerings in a more favorable financial light than reality dictated.

Financial Impact on Students

Former students involved in the lawsuit assert that despite initial estimates suggesting a total cost of $39,000 for 60 credit hours, they were unexpectedly burdened with additional fees and costs associated with what they describe as continuation courses. These unforeseen expenses allegedly inflated the total cost of their education significantly beyond the originally advertised figures.

Federal Oversight and Response

The Department of Education recently imposed a substantial fine of $37 million on Grand Canyon University as a result of a separate investigation into similar practices. This penalty underscores federal concerns regarding the transparency and accuracy of the university’s financial disclosures to students.

University’s Response and Legal Challenges

In response to inquiries, Grand Canyon University’s Chief Marketing Officer issued a statement expressing confidence that the lawsuit would be dismissed swiftly. The university has characterized the legal action as part of a broader campaign aimed at discrediting its reputation following the Department of Education’s findings and subsequent financial penalty.

State and Federal Scrutiny

Earlier this year, a state audit conducted on the matter found no wrongdoing on the part of GCU, a finding that contrasts with federal investigations and the subsequent imposition of fines. The university has adamantly contested the federal penalties, opting to appeal the $37-million fine levied against it.

Conclusion: Implications for Educational Consumers

The class-action lawsuit against Grand Canyon University underscores ongoing challenges in ensuring transparency and fairness in higher education marketing. As federal and state regulators continue to scrutinize educational institutions’ practices, prospective students are urged to exercise diligence in verifying cost disclosures and researching financial aid options before committing to educational programs.

For the latest updates on this developing story and more local news, download The Local News App today.

This article provides a detailed overview of the class-action lawsuit filed against Grand Canyon University, emphasizing allegations of deceptive marketing practices and the broader implications for educational consumers.

Source