Connecticut AG secures $5M in prejudgment over defunct nursing school
Defendants "materially misrepresented to consumers significant aspects of Stone Academy's practical nursing program," judge writes.
Photo: Pichsakul Promrungsee EyeEm/Getty Images
Connecticut Attorney General William Tong has announced that the state has secured a $5 million prejudgment remedy against Stone Academy, a now-defunct for-profit nursing school.
Tong sued Stone Academy, Paier College of Art and owner Joseph Bierbaum last year following the abrupt closure of the school, alleging numerous violations of the Connecticut Unfair Trade Practices Act. The state asked the court to attach millions of dollars of Stone's and Bierbaum's assets during the pendency of the litigation to prevent defendants from offloading or shifting resources to evade accountability.
In granting the $5 million prejudgment remedy, Superior Court Judge Barbara Bellis said the state has established probable cause that it will prevail in its case against Stone.
WHAT'S THE IMPACT
Defendants "materially misrepresented to consumers significant aspects of Stone Academy's practical nursing program," wrote Bellis, adding that the state "acted reasonably in refusing to allow Stone Academy to offer a teach-out. … The fact that the state did not authorize a teach-out does not excuse the misconduct of the PJR defendants."
Bellis specifically found that Stone and Bierbaum violated the law "knowingly," concluding that the problems at Stone were not simply "consequences relating to the [COVID-19] pandemic" as they have claimed.
The court found that "Stone Academy failed to provide the instruction and clinical training that it promised their students." In addition, Stone Academy misrepresented significant aspects of its "practical nursing program, including the hands-on clinical hours and experience promised in its marketing materials" and its ability to provide students with "qualified faculty."
ON THE RECORD
"The magnitude of this prejudgment remedy and the strong words in this decision send a clear message to Stone Academy and its owners – you knowingly broke the law, you harmed students, and you will be held accountable," said Tong. "We are demanding millions of dollars in penalties and recovery of ill-gotten gains, and we're going to fight for every measure of justice possible."
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
