Capella University Class Action Says Degree Process is 'Bait and Switch' (2024)

Christina Spicer|April 25, 2018

Category: Consumer News

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Capella University Class Action Says Degree Process is 'Bait and Switch' (1)The for-profit online university Capella was hit with a class action lawsuit alleging the school focuses on growing enrollment, but neglects current students.

Two former Capella University students allege in their class action lawsuit that Capella falsely advertises the time and money it takes for students to get their degrees.

The plaintiffs say that the for-profit university pours resources into recruiting new students at the expense of current students, leading to decreased resources, high instructor turnover, and delays.

“Capella essentially operated a ‘bait and switch’ program,” alleges the Capella University class action lawsuit. “The bait was displayed when Capella’s marketing materials and recruiters misled prospective and current students making misleading statements about the time to completion and cost of their mostly student-loan financed doctoral degrees.”

One of the plaintiffs alleges that she spent more than $50,000 trying to get a doctor of nursing practice degree. She says Capella advertises the degree as taking 30 months and costing $35,000 in tuition, but despite earning high grades, the plaintiff says that delays and instructor turnover led her to quit and pursue her degree elsewhere.

The other plaintiff says she spent more than $100,000 in tuition at Capella pursuing a doctor of education degree based on false promises that the degree would take three years. The plaintiff also alleges she earned top grades, but when it came to making progress to finishing her degree, Capella only presented barriers and hurdles.

“Instead of completing the promised doctoral degree program requirements and being awarded a doctoral degree in the advertised time, Capella employed the ‘switch,’” says the Capella University class action lawsuit. “Capella created an endless routine of hurdles and benefitted from additional tuition payments. Students who believed they were getting ever closer to obtaining their doctoral degree were in fact stuck with decreasing resources, faculty turnover, disorganization and a lack of oversight, all of which increased the length of the doctoral students’ enrollments at Capella.”

According to the Capella class action lawsuit, the online nature of the programs offered by Capella makes it difficult for students to realize that their peers are facing the same obstacles as they are in finishing their degree.

The plaintiffs say that they and thousands of other frustrated students are at the mercy of Capella advisors “who can and did ensure that doctoral students would be misled, confused, and ultimately cheated out of their money to the benefit of Capella.”

The Capella University class action alleges that Capella banks on the “crushing student debt” created by the delays and hurdles it creates to force students to un-enroll before finishing their degree so they can work to pay back that debt. Further, alleges the Capella class action lawsuit, the credits awarded by Capella are useless because other institutions will not accept them.

The plaintiffs seek to represent other Capella students nationwide who enrolled and paid tuition starting in 2006, along with Kansas and Tennessee subclasses.

The Capella class action lawsuit seeks damages as well as a court order stopping Capella from its alleged bait and switch and false marketing. The plaintiffs also want Capella to disgorge all profits from “excessive doctoral program coursework.”

Theformer Capella University students are represented by Garrett D. Blanchfield, and Roberta A. Yard of Reinhardt Wendorf & Blanchfield and Paul Lesko of Peiffer Tosca Wolf Abdullah Carr & Kane.

The Capella University Class Action is Wright, et al. v. Capella Education Company, et al., Case No. 0:18-cv-01062-WMW-SER, in the U.S. District Court for the District of Minnesota.

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Capella University Class Action Says Degree Process is 'Bait and Switch' (2024)

FAQs

Capella University Class Action Says Degree Process is 'Bait and Switch'? ›

Degree Process Bait-and-Switch

What is the Capella bait and switch lawsuit? ›

The plaintiffs say that the for-profit university pours resources into recruiting new students at the expense of current students, leading to decreased resources, high instructor turnover, and delays. “Capella essentially operated a 'bait and switch' program,” alleges the Capella University class action lawsuit.

Is Capella University under investigation? ›

In 2022, Capella was also part of a list of 153 mostly for-profit schools who were alleged to have fraudulent practices to the point that 200,000 student loan borrowers would have their loans canceled, based on the approval of a settlement by a federal judge in San Francisco.

Did Capella lose accreditation? ›

“Capella University – accredited by the Higher Learning Commission – is proud of its programs, its faculty, its staff, and its continued service to our nation's veterans, and we remain dedicated to providing flexible, professionally aligned online degree programs for working adults.”

Is Capella University a degree mill? ›

Explanation: There's a common misconception that all for-profit schools like Capella University are diploma mills. Many people think a degree from Capella holds no value to employers. But as long as the school is accredited, the degree will have value in an employer's eyes.

Did Zara hit with $5 m lawsuit over bait and switch pricing? ›

Zara hit with $5M lawsuit over 'bait-and-switch' pricing

An American customer says the fast-fashion retailer, which prices in Euros even in the U.S., charges far more than the going currency exchange rate.

What is happening with AMP class action? ›

Settlement Approval

On 20 August 2023, the parties to the AMP shareholder class action reached an agreement to settle the class action for the sum of $110 million inclusive of costs. On 14 November 2023, the Supreme Court of New South Wales approved the settlement of the AMP shareholder class action.

Did Capella University mislead students? ›

Minneapolis-based Capella University has resolved a lawsuit that accused the online, for-profit school of misleading students about the time it takes to earn a doctoral degree. Students who dropped out of its nursing and education programs filed a class-action suit against Capella in 2018.

What is the Capella controversy? ›

Capella University was one of 153 institutions in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School.

Is there a lawsuit against Capella University? ›

Settlement Details

The lawsuit ultimately resulted in a settlement between Capella University and the plaintiffs. The settlement included: Substantial monetary amount paid by the university. Compensation for affected students who experienced financial hardship.

Is a degree from Capella respected? ›

Capella University has been acknowledged by organizations, like the Higher Learning Commission (HLC) and the Council for Accreditation of Counseling and Related Educational Programs (CACREP) as an educational institution.

How do I file a complaint against Capella University? ›

Learners who have complaints that have not otherwise been resolved through contact with Academic Advising, Enrollment Services, Financial Aid Support Team, University Operations Support, or Technical Support may submit their request to OACS@capella.edu.

Is Capella University credible? ›

Capella University is accredited by the Higher Learning Commission (hlcommission.org), an institutional accreditation agency recognized by the U.S. Department of Education.

What rank is Capella University? ›

College Factual ranked Capella University as #145 out of 2,217 colleges and universities in the country on its 2024 Best Colleges list.

What GPA do you need for Capella FlexPath? ›

When you successfully complete a set number of courses at a 2.8 GPA or higher, you can transfer into FlexPath.

What is Capella University ranked in the world? ›

Capella University: Rankings
RankingCategory
#2753 of 14,131In the World
#781 of 2,597In North America
#717 of 2,496In the United States
#18 of 48In Minnesota
7 more rows
Feb 29, 2024

What happened to the chicken class action lawsuit? ›

Latest settlement in poultry price-fixing suit brings recovery to $284 million. CHICAGO — A class of direct purchasers agreed to a $75 million settlement with two poultry processors involved in a consolidated antitrust lawsuit for allegedly conspiring to fix prices of US broiler chicken. House of Raeford Farms Inc.

What is the lawsuit against Golo? ›

What does the lawsuit allege? The thrust of the lawsuit is that GOLO's “prominent and systematic mislabeling of the Product and its false and deceptive advertising form a pattern of unlawful and unfair business practices that harms the public and, if unstopped, could lead to substantial societal harm.”

Did steam lose a class action lawsuit? ›

Although the judge allowed the class action against Valve to proceed for game developers, he also ruled that Steam users could not participate in that lawsuit. Instead, gamers with a Steam account must pursue individual arbitration claims against Valve to seek compensation for Valve's alleged anticompetitive behavior.

Is there a class action lawsuit against Big Fish Casino? ›

EverMerge developer Big Fish Games accused of knowingly deceiving customers and also the subject of a class action lawsuit resulting in a $155 million settlement.

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