The People of the State of California, v. Ashford University, LLC, et al.
Analysis Group was retained by the California Department of Justice, the plaintiff in a successful consumer protection litigation brought against Ashford University, an online, for-profit college, and its parent company, Zovio (formerly Bridgepoint Education). The state claimed that Ashford and Zovio violated California’s unfair competition and false advertising laws by giving students false or misleading information about career outcomes, cost and financial aid, pace of degree programs, and transfer credits in order to persuade them to enroll at Ashford.
An Analysis Group team led by Senior Advisor David Sosa and Manager Ilona Mostipan supported affiliated experts Jerome Lucido (USC Rossier School of Education) and Stephanie Cellini (George Washington University), both of whom submitted expert reports and testified at trial. Professor Lucido evaluated phone call transcripts to identify instances in which Ashford admissions counselors misled prospective students by making false claims regarding financial aid and future debt and by falsely promising that Ashford degrees qualified students for teaching careers and other occupations like counseling and therapy, among other misrepresentations. Professor Cellini assessed the economic value of an Ashford education, finding that the average Ashford student was unlikely to earn enough over their working life to recoup the cost of their education.
A judge in the Superior Court of San Diego County determined that the defendants committed more than 1.2 million violations and imposed $22.4 million in civil penalties. Subsequently, the California Court of Appeal for the Fourth Appellate District largely affirmed the trial court’s judgment. Both courts extensively cited testimony and analysis by Analysis Group experts in their decisions.