Penalty Amount
$5,000,000
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.
The settlement includes a $5 million fund to compensate harmed students, bars Joseph Bierbaum from employment in higher education for five years, requires the owners to notify the Attorney General before opening new for-profit schools, and provides remedial programs for students to complete their education and prepare for exams.
In-house legal teams should review student enrollment agreements, vendor contracts for educational services, and employment contracts for instructional staff. Key clauses to examine include service level agreements detailing educational quality metrics and clinical training obligations, refund and cancellation policies, instructor qualification and experience requirements, textbook and material provision commitments, program completion guarantees, and revenue recognition terms tied to service delivery. Given the allegations of substandard resources and abrupt closure, contracts may need amendments to include specific accreditation status disclosures, measurable performance benchmarks, clear refund triggers for program failure, and penalties for non-compliance with clinical training requirements.
Entity
Stone Academy
Industry
Education$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.
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.
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.