In January 2013, prior to the purchase of Spencerian College by Sullivan University,[4] Kentucky Attorney General Jack Conway filed a consumer-protection lawsuit against Spencerian College for alleged misrepresentation of job placement data.
The suit alleges that Spencerian College knowingly and intentionally provided false job placement data to lure students "into student loan arrangements and to join their for-profit institution."
The disparities between job placement numbers reported on the Spencerian College website and those reported to Spencerian College's institutional accrediting organization differed by as much as 40%, according to the suit.
[5] As part of the purchase of Spencerian College, Sullivan University agreed to forgive $1.7 million in student loans made to 668 students between the years 2007 and 2011.
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