Current:Home > reviewsIdaho ruling helps clear the way for a controversial University of Phoenix acquisition -Streamline Finance
Idaho ruling helps clear the way for a controversial University of Phoenix acquisition
View
Date:2025-04-19 03:11:55
The University of Idaho said Wednesday it would move forward with its planned affiliation with the for-profit University of Phoenix in a nearly $700 million deal after a judge dismissed the state attorney general’s lawsuit alleging the deal was done in violation of an open meetings law.
Attorney General Raúl Labrador failed to prove the Board of Regents violated Idaho’s Open Meetings Law when considering the transaction, an Idaho judge ruled Tuesday in dismissing Labrador’s lawsuit.
The university hailed the decision as a victory for both the board’s executive session practices and for access to higher education in Idaho. The lawsuit has been one of the biggest impediments to closing the deal.
“We look forward to completing our affiliation with the University of Phoenix in the coming months and bringing this unique opportunity to the citizens of Idaho,” said a statement from university spokesperson Jodi Walker. “Higher education has never been more important than now as we work to meet the workforce needs of our state.”
The deal is the latest attempt by troubled for-profit schools to cleanse their reputations after investigations into deceptive practices and face less regulation as nonprofits, said David Halperin, a Washington, D.C., attorney and longtime critic of the for-profit college industry.
“Why Idaho wants to buy is a little harder to understand,” he said.
During a meeting open to the public last year, the board unanimously voted to approve the creation of a not-for-profit entity that will acquire the operations of the University of Phoenix. In other, closed-door discussions, the board “reasonably believed” it was in competition with one or more public agencies in other states to acquire the University of Phoenix, which allowed for an executive session, District Judge Jason Scott’s ruling said.
The ruling “will lead to far less government transparency and accountability,” Labrador said in a statement Wednesday. “That is bad for Idaho citizens, and it defies the entire purpose of the law. We are looking closely at all appellate options to ensure Idaho’s Open Meetings Law remains a bulwark for openness and government accountability.”
Labrador complained the board kept details of the deal secret until the last moment and decided to purchase the University of Phoenix despite fines for deceptive and unfair practices.
The University of Phoenix was among the for-profit schools involved in a 2022 settlement to cancel federal student debt for former students who applied for debt cancellation because of alleged misconduct by the schools.
In 2019, the University of Phoenix reached a record $191 million settlement to resolve Federal Trade Commission charges that the institution used deceptive advertisements that falsely touted its relationships and job opportunities with companies such as AT&T, Microsoft and the American Red Cross.
The University of Idaho has hailed the deal as expanding educational access to adult learners who seek online programs: “University of Phoenix serves primarily working adults. U of I will remain Idaho’s land-grant, residential university serving primarily traditional learners.”
The two will retain a separate operational structure. Each will have its own president and leadership team, the University of Idaho said.
Representatives for the University of Phoenix didn’t immediately respond to an email from The Associated Press seeking comment Wednesday.
A deputy attorney general advising the board had approved the executive sessions as compliant with Idaho’s Open Meeting Law, the judge’s ruling noted.
State Board President Linda Clark said they will seek payment of legal fees by the attorney general’s office.
veryGood! (6)
Related
- Messi injury update: Ankle 'better every day' but Inter Miami star yet to play Leagues Cup
- ESPN signs former NFL MVP Cam Newton, to appear as regular on 'First Take'
- Biden tells Trump to ‘get a life, man’ and stop storm misinformation
- Rihanna Has the Best Advice on How to Fully Embrace Your Sex Appeal
- What polling shows about Minnesota Gov. Tim Walz, Harris’ new running mate
- Winter in October? Snow recorded on New Hampshire's Mount Washington
- Security guard gets no additional jail time in man’s Detroit-area mall death
- Hurricane Milton from start to finish: What made this storm stand out
- Former Milwaukee hotel workers charged with murder after video shows them holding down Black man
- Chicago man charged with assaulting two officers during protests of Netanyahu address to Congress
Ranking
- Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
- Avian enthusiasts try to counter the deadly risk of Chicago high-rises for migrating birds
- Justin Timberlake Shares Update Days After Suffering Injury and Canceling Show
- Opinion: As legendary career winds down, Rafael Nadal no longer has to suffer for tennis
- Jamaica's Kishane Thompson more motivated after thrilling 100m finish against Noah Lyles
- North Carolina maker of high-purity quartz back operating post-Helene
- ESPN signs former NFL MVP Cam Newton, to appear as regular on 'First Take'
- Inflation is trending down. Try telling that to the housing market.
Recommendation
Olympic men's basketball bracket: Results of the 5x5 tournament
Social Security COLA shrinks for 2025 to 2.5%, the smallest increase since 2021
SEC, Big Ten flex muscle but won't say what College Football Playoff format they crave
Inflation is trending down. Try telling that to the housing market.
Why we love Bear Pond Books, a ski town bookstore with a French bulldog 'Staff Pup'
AP Week in Pictures: Global
What to know about this year’s Social Security cost-of-living adjustment
Pregnant Influencer Campbell “Pookie” Puckett and Husband Jett Puckett Reveal Sex of Their First Baby