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.
The state seeks civil penalties up to $5,000 per violation (potentially millions), disgorgement of all ill-gotten gains, restitution for affected students, and appointment of a receiver to marshal Stone Academy's assets.
In-house legal teams should review all student enrollment agreements, clinical partnership contracts, and vendor agreements with third-party service providers. Key clauses to scrutinize include those guaranteeing educational quality and program delivery, specific commitments for clinical training hours and qualified instructors, restrictions on the use of tuition and fee revenues, and any provisions allowing related-party transactions or transfers of assets. Given the allegations of fund diversion for personal luxury, contracts must be assessed for adequate financial oversight mechanisms, audit rights, and clear definitions of permissible operational expenses. Potential changes include adding stricter fund allocation terms, requiring third-party financial audits, implementing penalties for diversion of educational funds, and strengthening representations and warranties regarding the maintenance of educational resources like textbooks and qualified faculty.
Entity
Stone Academy
Industry
EducationOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/attorney-general-tong-expands-complaint-against-stone-academy
102323 stone amended filing.pdf?rev=ef21610dd097401d91ac7023
https://portal.ct.gov/-/media/ag/press_releases/2023/102323-stone-amended-filing.pdf?rev=ef21610dd097401d91ac702364db97d2&hash=136597BD54ADA51792F9A5B08461978F
Attorney General Tong Sues Stone Academy
https://portal.ct.gov/AG/Press-Releases/2023-Press-Releases/Attorney-General-Tong-Sues-Stone-Academy
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.
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 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.
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.
Connecticut’s legislature passed House Bill 5312, creating new civil enforcement mechanisms for deepfake digital sexual assault, including unauthorized dissemination of synthetically created intimate images and AI-generated child pornography. The bill establishes a private right of action for victims and empowers the Connecticut Attorney General to pursue civil injunctions and penalties against abusers and platforms hosting illegal content. This builds on prior Connecticut laws criminalizing unauthorized intimate image dissemination.