Connecticut Attorney General William Tong sought a court order to compel the owners of Stone Academy, a for-profit nursing school, to comply with civil investigative demands following the school's abrupt closure. The investigation examines potential violations of the Connecticut Unfair Trade Practices Act, including issues with clinical instruction hours, faculty qualifications, and student transcript accuracy, which left students' education plans in limbo.
The Attorney General is seeking a court order to force Stone Academy's owners to respond to civil investigative demands and provide requested information and records regarding the school's operations and closure.
In-house legal teams should review all agreements related to educational service delivery, specifically student enrollment agreements, faculty employment contracts, and any third-party clinical placement agreements. Key clauses to scrutinize include: (1) program delivery and curriculum standards clauses to verify definitions and requirements for 'clinical instruction hours'; (2) faculty qualification and certification requirements; (3) transcript issuance and record-accuracy warranties; (4) record-keeping, maintenance, and access provisions; and (5) compliance representations and audit rights. Given the investigation into potential misrepresentations and non-compliance, contracts may need amendments to include more specific, measurable standards for clinical training, mandatory faculty credential documentation, enhanced transcript verification procedures, and clearer obligations for record preservation and production during regulatory inquiries.
Entity
Stone Academy
Industry
EducationOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/ag-tong-seeks-court-order-to-force-stone-academy-owners-to-comply-with-investigative-demands
2023 04 05 complaint w exhibits.pdf?rev=039a9fa40b3541dd8d3e
https://portal.ct.gov/-/media/ag/press_releases/2023/2023-04-05-complaint-w-exhibits.pdf?rev=039a9fa40b3541dd8d3e14d757c8606d&hash=57896859E754F4C472CCDABCEE6A68A4
2023 04 05 ltr to counsel re cid deficiencies.pdf?rev=093488
https://portal.ct.gov/-/media/ag/press_releases/2023/2023-04-05-ltr-to-counsel-re-cid-deficiencies.pdf?rev=0934885746394a2d909eb9f0fb88920b&hash=0ABE34175B85F2301CEFBA970FA2C8E3
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$5.0M
Connecticut Attorney General William Tong announced a $5 million settlement with Stone Academy and its owners for unfair and deceptive conduct. The defunct for-profit nursing school misrepresented its programs and failed to provide promised education, abruptly closing in February 2023. The settlement provides cash compensation to harmed students and bars the owners from higher education employment.
$5.0M
Connecticut Attorney General William Tong announced a $5 million preliminary settlement with Stone Academy and its owners for unfair and deceptive conduct. The for-profit nursing school failed to deliver promised education, lacking textbooks, experienced teachers, and clinical training, and abruptly closed in February 2023. The settlement provides cash payments to harmed students, bars the owner from higher education employment for five years, and includes measures to help students complete their education.
Connecticut Attorney General William Tong expanded the complaint against Stone Academy, alleging its owners siphoned millions for personal luxury while students were denied promised education and clinical training. Revenues surged during the pandemic, but exam pass rates fell and students lacked textbooks and qualified teachers. The AG seeks civil penalties, restitution, and a receiver to protect assets for student relief.
Attorney General William Tong refuted Stone Academy's attempts to blame regulators for its abrupt closure, detailing the school's own misconduct and harm to students. He is leading an investigation into potential violations of the Connecticut Unfair Trade Practices Act and demands full financial disclosure and resources from Stone to assist affected students.
Connecticut Attorney General William Tong announced a civil investigative demand into MediaLab.AI Inc., owner of the Kik Messenger app, over lax age assurance practices, content moderation, and child safety failures that advocates have dubbed a "predator's paradise." The action follows a July 2025 notice of violation under the Connecticut Data Privacy Act for privacy notice deficiencies and processing sensitive data — including health, biometric, and precise geolocation data — without proper consent, which the company has only partially addressed. The new investigation seeks records related to practices that may constitute unfair or deceptive acts or practices under the CTDPA and the Connecticut Unfair Trade Practices Act. No fine has been imposed to date.
Attorney General William Tong issued a consumer alert warning Connecticut residents about unregulated, offshore decentralized finance (DeFi) cryptocurrency exchanges, naming GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid. The alert highlights risks including bypassing U.S. law via VPNs, predatory leverage up to 250x, misleading synthetic asset products, and lack of KYC protections. No enforcement action or penalty was imposed; at least one Connecticut consumer reportedly lost $200,000 deposited with an unregulated DeFi exchange.