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CT AG Seeks Court Order Against Stone Academy for Nursing Program Violations

Stone AcademyApril 5, 2023Connecticut Attorney General

Summary

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.

Remedy

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.

Contract Impact

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.

Contract Search Terms

clinical instruction hoursfaculty qualificationsstudent transcript accuracycompliance with state lawunfair trade practicesstudent enrollment recordspayroll recordsstaffing ratiosrecord storagecivil investigative demands

Laws Cited

Connecticut Unfair Trade Practices Act

Violation Types

Entity Details

Entity

Stone Academy

Industry

Education

Official Sources

Related Enforcement Actions

CT

Stone Academy

$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.

CT

Stone Academy

$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.

CT

Stone Academy

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.

CT

Stone Academy

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.

CT

U.S. Food and Drug Administration (FDA)

On May 11, 2026, Connecticut Attorney General William Tong led a bipartisan coalition of 21 attorneys general in submitting a comment letter to the U.S. Food and Drug Administration (FDA) urging the agency to abandon draft guidance that would ease approvals for flavored e-cigarette products. The coalition argues the guidance ignores evidence that flavored e-cigarettes disproportionately drive youth addiction and that FDA has failed to enforce existing authorization requirements for e-cigarette products. The letter references past tobacco and e-cigarette enforcement actions, including the 1998 tobacco master settlement agreement and the 2022 $438.5 million settlement with JUUL Labs.

CT

Bad actor platforms

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