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.
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.
Entity
Stone Academy
Industry
EducationOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/attorney-general-tong-refutes-stone-academy-misdirection
51223 stone letter.pdf?rev=dd53265898af4db29f91c8a405a505d7&
https://portal.ct.gov/-/media/ag/press_releases/2023/51223-stone-letter.pdf?rev=dd53265898af4db29f91c8a405a505d7&hash=F955C698AC3C19CC1B7EEDEDA732CFC8
final 6 1 2023 william tong stone academy letter june 2023 f
https://portal.ct.gov/-/media/ag/press_releases/2023/final-6-1-2023-william-tong---stone-academy-letter---june-2023-final-v2.pdf?rev=b4c780d09cc34bf1ae4dfcdc309e57b8&hash=8110E91F4BEDDAED4C2255680BFDD5DD
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.
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.
$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.
$8.0M
Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.