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.
$29.6M
Attorney General Jennifer Davenport joined a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, for allegedly conspiring to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement includes cooperation in ongoing litigations and internal reforms to ensure fair competition.
$29.6M
Attorney General William Tong led a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, to resolve allegations of a widespread conspiracy to artificially inflate prices, reduce competition, and unreasonably restrain trade for numerous generic prescription drugs. The settlement includes cooperation from Glenmark in ongoing multistate litigations and internal reforms to ensure fair competition and compliance with antitrust laws.