Item 1. Legal Proceedings
Item 1.
LEGAL PROCEEDINGS
In the ordinary conduct of our business, we are subject to periodic lawsuits, investigations and claims, including, but not limited to, claims involving students or graduates and routine employment matters. Although we
cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, we do not believe that any currently pending legal proceeding to which we are a party will have a material adverse effect on our
business, financial condition, results of operations or cash flows.
In December 2021, we received a letter from the Consumer Financial Protection Bureau (“CFPB”) stating that the CFPB is assessing whether we are subject to CFPB’s supervisory authority based on our activities related to
certain extensions of credit to our students and requesting certain information. The letter states that the CFPB has the authority to supervise certain entities in the private education loan market and certain other consumer financial products and
services. We have provided the requested information to the CFPB and are waiting for the CFPB to respond.
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On June 7, 2022, the Massachusetts Office of the Attorney General (“AGO”) issued a civil investigative demand (“CID”) to Lincoln
Technical Institute in Somerville, Massachusetts. The CID states that it is intended to investigate possible unfair or deceptive methods, acts, or practices in violation of state law and that it relates to allegations that the institution
violated law by engaging in unfair or deceptive practices in connection with their policies regarding fee refunds and associated disclosures to students and prospective students. The CID has requested that the institution provide to the AGO a
list of documentation generally from the period from January 1, 2020 to the present. We have provided documents requested by the CID and are cooperating with the investigation.
Item 1A.
RISK FACTORS
The Company has no changes to the Risk Factors disclosed in our Form 10-K.
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