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Last week, a three judge panel approved the proposed $11.3 million class action settlement in the class action lawsuit accusing Mountain State University of concealing problems with their accreditation and then leaving students with worthless degrees before closing down.
A class action and flurry of other lawsuits were filed against the nursing school after it lost its accreditation in August of 2012. Mountain State University was warned by the accrediting body to fix problems in 2010 and 2011, including an excessively top down administration, failure to communicate with faculty and students, and failure to make long term plans for the institution. Subsequent investigations revealed that the university president had awarded himself a $1.84 million salary, more than Harvard’s or Yale’s presidents and cited him with excessive use of the school’s private jets.
The University of Charleston will receive $1.5 million from the more than $18.5 million for expenses it incurred related to its takeover of MSU’s campuses following the institution’s closure. Lawyers who represented the students will receive $5.7 million in attorneys’ fees. The University of Charleston will take a loss, according to representatives, but they did not want to stand in the way of a settlement to former Mountain State students.
The remaining $11.3 million is meant for students, but, as of Feb. 20, only 1,071 had submitted claims with the deadline last Sunday. Additionally, students who attended classes on or after May 27, 2008, in nursing or any other health sciences program are still eligible for money from the settlement.
Students from other programs are eligible as well, as long as they didn’t get a national, regional or state accredited degrees from the University of Charleston or Mountain State University before the program closed or before UC’s offer to graduate them under its name ended. Those eligible need to have submitted transcripts and completed claim forms to receive money from the class action settlement by March 1st. Class members, former MSU students, will be awarded money based on how many MSU credits they had that wouldn’t transfer to another school.
Funds should be awarded to class members in between 30 and 45 days according to the attorney representing the class.
A payout from Mountain State’s insurer, United Educators, and the sale of it’s Beckley campus to West Virginia University and Martinsburg campus to Viking Way Holdings, a limited liability company, is funding much of the Mountain State University class action settlement.
Former Mountain State students have been completing their degree with the University of Charleston in Beckley and Martinsburg since Mountain State closed. The University of Charlseton will continue to hold classes until the end of June.
The deadline to file a claim for the Mountain State class action settlement passed on March 1, 2015. More information about the settlement, including court documents, is available at MSUSettlement.com.
The Mountain State University Accreditation Class Action Lawsuit is Dale Burger, et al. v. Mountain State University, Inc., Charles H. Polk and The Mountain State University Board of Trustees, Case No. 12-cv-1293, Circuit Court of Kanawha County, West Virginia.
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12 thoughts on$11.3M Payout In Mountain State U. Accreditation Class Action Settlement Approved
I applied for forgiveness and was denied. They said I withdrew
I knew nothing about this either. I was half way through the program, sitting in class at a cohort in Morgantown, WV when we found out. I still. Have 21,000 in debt. Does anyone know if anything can be done?
I was never informed of this lawsuit. And now August 14,2022i was looking into getting my transcript transferred. Wow I guess I missed out. I only had 6 credits left . Before graduation. I had to step back from my course due to my son was diagnosed with cancer.
On top of this. Kaplan University was going through another lawsuit which I had transfer to mountain State University. Again I was never contacted or informed of this
I applied for Borower forgiveness and was denied.
Is it too late to get anything from this suit ? Am I eligible? I went to a cohort class at Delbarton WV in 2009 through Mountain State.
I want to know too. Who were all notified and misinformed the only nurses accreditation didn’t transfer. I was in the bachelor’s degree in organizational leadership.
Hi, I graduated with my BA in 2007. I had no idea about this lawsuit. I owe 60,000 in student loans to this day. I feel I was mislead, in every aspect. Plz contact me.
What if you missed out on the claim? Is there anything that can be done at this time ?
I am having same trouble. Did you find out what we can do?
per the msu settlement i am awarded 70 points? could you tell me what this means? is that 70 credit hours to go somewhere else? or is it a settlement? and if a settlement what is the cash value per point? thanks maria
how do you know what you were awarded ? please email me if anyone has any info. joseph.foster82@gmail.com