U of Phoenix reaches $191M settlement in marketing lawsuit

The University of Phoenix and its parent company, Apollo Education Group, agreed Tuesday to a $191 million settlement in a lawsuit brought by the Federal Trade Commission (FTC) accusing the for-profit chain of misrepresenting its ties with employers. The lawsuit alleged that the university created deceptive ads featuring major employers — including Adobe, Microsoft and Twitter — that led students to believe the companies had worked with the university to create job opportunities for its graduates. These ads targeted veterans and their families, as well as Hispanic students, the lawsuit alleged. As part of the settlement, the university will pay the FTC $50 million in cash and cancel $141 million in student debt.