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CT AG Tong Investigates Stone Academy for Unfair Trade Practices

Stone AcademyJune 1, 2023Connecticut Attorney General

Summary

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.

Contract Impact

In-house legal teams should review all student-facing agreements, including enrollment contracts, tuition payment plans, and any third-party vendor agreements for educational services (e.g., clinical placement providers). Key clauses to scrutinize are teach-out provisions (obligations if the school closes), refund and withdrawal policies, accreditation maintenance requirements, and financial surety bond mandates. Given the allegations of abrupt closure and harm to students, contracts may need amendments to include clearer, state-compliant closure protocols, dedicated financial reserves or bonds for student refunds, and enhanced transparency requirements regarding institutional financial health and regulatory compliance status.

Contract Search Terms

teach-out agreementrefund policytuition recovery fundaccreditation status clausestudent loan discharge provisioncampus closure notification requirementfinancial surety bondenrollment agreementwithdrawal policy

Laws Cited

Connecticut Unfair Trade Practices Act

Violation Types

Entity Details

Entity

Stone Academy

Industry

Education

Official Sources

Related Enforcement Actions

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$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.

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