DeVry University Students Sue, Alleging Degree Benefits Were Falsely Advertised

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Former students of DeVry University have filed a class action lawsuit against the school and Adtalem Education Group Inc., alleging that the benefits of receiving a degree from the university were misrepresented.

DeVry University is a for-profit school with locations across the country in addition to online courses. The institution offers a variety of programs including business degrees, technology degrees, healthcare administration degrees, liberal arts and science degrees, media arts degrees, and graduate degrees.

According to the DeVry class action lawsuit, the school misrepresented the employment and income rate of its graduates. Advertisements from the school reportedly stated facts such as “90% of all graduates in the active job market had careers in their fields within six months.”

The school’s marketing allegedly also claimed that their graduates made a higher-than-average income, stating: “One year after graduation, DeVry University grads report earning 15% more than median earnings reported by all other bachelor’s degree graduates.”

The plaintiffs argue that this alleged deception was intended to attract potential students to DeVry and have them remain through graduation. The university allegedly “falsely and misleadingly advertised the employment rate and income rate of their graduates to induce potential students to purchase educational products and services, and to remain students through graduation.”

DeVry University’s marketing strategy drew the attention of the Federal Trade Commission (FTC), prompting the agency to file a lawsuit enjoining the “deceptive” trade practices. The case was settled in December 2016 and prohibited the university from “[m]aking any representation, expressly or by implication, about the benefit of any educational product or service, or the success or likely success of any student or graduate, unless the representation is non-misleading, and, at the time such representation is made, DeVry possesses and relies upon Competent and Reliable Evidence that is sufficient to substantiate that the representation is true.”

The DeVry class action lawsuit claims the defendants made their claims based on faulty data from a third-party income report, as revealed in the FTC lawsuit. The former students claim the university should have known that their third-party data was not reliable and purposely used the inaccurate data to skew the perception of their graduate outcomes.

“The sampling methods and methodology behind the income report gave or should have given Defendants reason to question the reliability of the conclusions and information contained in the report,” the students claim. “Among other problems, the comparison of incomes of DeVry graduates with graduates from other schools did not adjust for significant salary drivers such as age, experience, and degree field.”

The students accuse DeVry University of fraud, negligent misrepresentation, unjust enrichment, and violating the Deceptive Trade Practices Act. The proposed class action lawsuit seeks restitution, economic damages, mental anguish damages, DTPA damages three times each plaintiffs economic and mental anguish damages, court costs, and attorneys’ fees.

The DeVry University Class Action Lawsuit is Lindberg, et al. v. Adtalem Global Education Inc., et al., Case No. 5:18-cv-00649-XR in the United States District Court for the Western District of Texas.