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EDMC > SEC Filings for EDMC > Form 8-K on 6-Dec-2013All Recent SEC Filings

Show all filings for EDUCATION MANAGEMENT CORPORATION | Request a Trial to NEW EDGAR Online Pro

Form 8-K for EDUCATION MANAGEMENT CORPORATION


6-Dec-2013

Other Events


Item 8.01 - Other Events.

As previously disclosed in the periodic reports of Education Management Corporation (the "Company"), the Company has been cooperating with an investigation initiated by the Colorado Attorney General's Office in September 2012. The subpoena originally received from the Colorado Attorney General's Office requested documents and detailed information since January 1, 2006 and was primarily focused on the programs offered by the College of Psychology and Behavioral Sciences at the Denver, Colorado campus of Argosy University.

On December 5, 2013, the Company entered into a Final Consent Judgment (the "Consent Judgment") with the Colorado Attorney General's Office for the purpose of resolving disputed claims, avoiding the expense of further litigation, and permitting the Company to focus on its education mission with regard to its students. Under the Consent Judgment, without admitting liability, the Company has agreed to pay the aggregate amount of approximately $3.4 million, consisting of $2.9 million to be distributed as restitution to eligible students and $0.5 million to the Colorado Department of Law to be used by the State of Colorado for consumer restitution and as reimbursement to the state for reasonable costs and attorney's fees and for future consumer education, consumer fraud and antitrust enforcement efforts. The Company further agreed to a suspended civil penalty of $1.0 million, which becomes due and payable if the Company commits a knowing and willful material violation of the Consent Judgment within three years of the date of the Consent Judgment.

As part of the Consent Judgment, with respect to Argosy University's conduct in Colorado and activities which affect Colorado residents, the Company agreed to, among other things: an injunction regarding advertising and enrolling students into Argosy University Denver's Doctorate of Education in Counseling Psychology if it is offered as a psychology licensure-track degree program; restrictions on program advertising and statements regarding licensing and employment prospects until certain conditions have been satisfied; provide written disclosures about programmatic accreditation, professional licensure, and employer hiring requirements relevant to particular degree programs; discontinue enrollment of new students in programs for which programmatic accreditations have been denied and are not subject to further appeal; certain actions regarding determination as to accreditation and licensing requirements, including training and hiring employees with specific knowledge of local training, licensure and accreditation requirements; hire an independent auditor to conduct an audit of programmatic compliance; and conduct periodic training and program reviews.

The Consent Judgment is pending court approval.


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