It was predominantly a distance learning institution, maintaining 14 ground locations across the United States.

[10] The American Institute of Commerce (AIC) was established in 1937 in Davenport, Iowa as a workforce preparatory school.

In 1999, after six decades of growth in Iowa, the U.S. Department of Education selected the school as 1 of 15 to receive a grant that would enable it to offer courses online.

[12] In October 2007, all seven Iowa and Nebraska-based Hamilton College campuses merged with and began operating under the Kaplan University brand.

[18] According to the contract terms, Kaplan receives 12.5 percent of the university's revenue, as long as funds are available after all operating expenses and guaranteed payments to Purdue have been covered.

The university, which had its main campus in Davenport, Iowa and its headquarters in Chicago, Illinois, was accredited by the Higher Learning Commission.

At the time of its acquisition by Purdue, it served approximately 33,000 students: roughly 75% female, 60% over age 30, and 25% who are military affiliated.

[35] Kaplan University used its access to a large and diverse pool of at-risk students to conduct teaching experiments to adjust its online programs.

It partnered with researchers from Harvard and Stanford who found that the online medium allowed for better analysis of learning outcomes and experimental teaching practices.

The cases included three separate complaints by three former Kaplan University employees, Messrs. Wilcox, Gillespie, and Diaz.

[42] Kaplan filed an answer to Diaz's amended complaint, and a summary judgment briefing schedule has been set.

On July 7, 2011, the U.S. District Court for the District of Nevada dismissed another False Claims Act case brought by another former employee of a Kaplan nationally accredited campus, Charles Jajdelski, in its entirety and entered a final judgment in favor of Kaplan.

Circuit Court for the Ninth Judicial Circuit affirmed the dismissal in part and reversed the dismissal on one allegation under the False Claims Act relating to eligibility for Title IV funding based on claims of false attendance.

[44] The surviving claim was remanded to the District Court, where Kaplan was again granted summary judgment on March 9, 2015.

[46] In 2010 Kaplan and other for-profit education companies came under scrutiny from the U.S. Congress due to concerns that the industry leaves too many students with heavy debts, and with credentials that are of little help in finding jobs.