Capella University Class Action Says Degree Process is 'Bait and Switch' (2024)

Christina Spicer|April 25, 2018

Category: Consumer News

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Capella University Class Action Says Degree Process is 'Bait and Switch' (1)The for-profit online university Capella was hit with a class action lawsuit alleging the school focuses on growing enrollment, but neglects current students.

Two former Capella University students allege in their class action lawsuit that Capella falsely advertises the time and money it takes for students to get their degrees.

The plaintiffs say that the for-profit university pours resources into recruiting new students at the expense of current students, leading to decreased resources, high instructor turnover, and delays.

“Capella essentially operated a ‘bait and switch’ program,” alleges the Capella University class action lawsuit. “The bait was displayed when Capella’s marketing materials and recruiters misled prospective and current students making misleading statements about the time to completion and cost of their mostly student-loan financed doctoral degrees.”

One of the plaintiffs alleges that she spent more than $50,000 trying to get a doctor of nursing practice degree. She says Capella advertises the degree as taking 30 months and costing $35,000 in tuition, but despite earning high grades, the plaintiff says that delays and instructor turnover led her to quit and pursue her degree elsewhere.

The other plaintiff says she spent more than $100,000 in tuition at Capella pursuing a doctor of education degree based on false promises that the degree would take three years. The plaintiff also alleges she earned top grades, but when it came to making progress to finishing her degree, Capella only presented barriers and hurdles.

“Instead of completing the promised doctoral degree program requirements and being awarded a doctoral degree in the advertised time, Capella employed the ‘switch,’” says the Capella University class action lawsuit. “Capella created an endless routine of hurdles and benefitted from additional tuition payments. Students who believed they were getting ever closer to obtaining their doctoral degree were in fact stuck with decreasing resources, faculty turnover, disorganization and a lack of oversight, all of which increased the length of the doctoral students’ enrollments at Capella.”

According to the Capella class action lawsuit, the online nature of the programs offered by Capella makes it difficult for students to realize that their peers are facing the same obstacles as they are in finishing their degree.

The plaintiffs say that they and thousands of other frustrated students are at the mercy of Capella advisors “who can and did ensure that doctoral students would be misled, confused, and ultimately cheated out of their money to the benefit of Capella.”

The Capella University class action alleges that Capella banks on the “crushing student debt” created by the delays and hurdles it creates to force students to un-enroll before finishing their degree so they can work to pay back that debt. Further, alleges the Capella class action lawsuit, the credits awarded by Capella are useless because other institutions will not accept them.

The plaintiffs seek to represent other Capella students nationwide who enrolled and paid tuition starting in 2006, along with Kansas and Tennessee subclasses.

The Capella class action lawsuit seeks damages as well as a court order stopping Capella from its alleged bait and switch and false marketing. The plaintiffs also want Capella to disgorge all profits from “excessive doctoral program coursework.”

Theformer Capella University students are represented by Garrett D. Blanchfield, and Roberta A. Yard of Reinhardt Wendorf & Blanchfield and Paul Lesko of Peiffer Tosca Wolf Abdullah Carr & Kane.

The Capella University Class Action is Wright, et al. v. Capella Education Company, et al., Case No. 0:18-cv-01062-WMW-SER, in the U.S. District Court for the District of Minnesota.

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Capella University Class Action Says Degree Process is 'Bait and Switch' (2024)

FAQs

What is the Capella bait and switch lawsuit? ›

The plaintiffs say that the for-profit university pours resources into recruiting new students at the expense of current students, leading to decreased resources, high instructor turnover, and delays. “Capella essentially operated a 'bait and switch' program,” alleges the Capella University class action lawsuit.

What is the Capella controversy? ›

In 2022, Capella was also part of a list of 153 mostly for-profit schools who were alleged to have fraudulent practices to the point that 200,000 student loan borrowers would have their loans canceled, based on the approval of a settlement by a federal judge in San Francisco.

How did Capella mislead students? ›

The allegations focused on recruiting emails, web chats and phone calls claiming that the “typical” or “average” student completes their program in a certain amount of time, when in reality, Capella knew most of its students never graduate.

What are the legal issues with Capella University? ›

Misuse of Education Funds

Capella University faced allegations of misusing education funds, including financial aid and tuition payments. Plaintiffs claimed that the university mishandled these funds, leading to financial implications for both students and the institution.

What is the bait and switch rule? ›

What Is Bait and Switch in Business? A “bait and switch” is a scam to mislead buyers, whereby a seller advertises an appealing but ingenuine offer to sell a product or service that the seller does not actually intend to sell. Instead, the seller offers a sub-par, defective, or unwanted alternative.

What to do if bait and switch? ›

You can also report vendors who use bait-and-switch techniques to the FTC. You can do this by filing a consumer complaint with the FTC online.

Is a degree from Capella respected? ›

Capella University has been acknowledged by organizations, like the Higher Learning Commission (HLC) and the Council for Accreditation of Counseling and Related Educational Programs (CACREP) as an educational institution.

Is Capella University a degree mill? ›

Explanation: There's a common misconception that all for-profit schools like Capella University are diploma mills. Many people think a degree from Capella holds no value to employers. But as long as the school is accredited, the degree will have value in an employer's eyes.

Can I sue Capella University? ›

If you are ready to sue Capella University you have to make sure that your case qualifies for small claims court. This is a specific type of court and they only take on certain cases. There are two factors you have to look out for: The type of compensation.

Do employers recognize Capella University? ›

While some employers may have reservations about online education, it's important to note that Capella University's degrees are fully accredited by agencies recognized by the US Department of Education, giving them validity in the academic world.

Why is Capella University on the borrower defense list? ›

According to the Department, some of the applications allege similar claims as in the Wright matter concerning alleged misrepresentations of the length of time to complete doctoral programs. Capella University subsequently received approximately 500 applications for borrower defense to repayment.

Who owns Capella University? ›

(SEI), is an education services holding company and is formerly known as Strayer Education, Inc. The company owns for-profit, online Capella University and Strayer University, as well as non-degree programs schools such as DevMountain, Hackbright Academy, and Sophia Learning.

How do I file a complaint against Capella University? ›

Learners who have complaints that have not otherwise been resolved through contact with Academic Advising, Enrollment Services, Financial Aid Support Team, University Operations Support, or Technical Support may submit their request to OACS@capella.edu.

Is Capella fully accredited? ›

Capella University is accredited by the Higher Learning Commission (hlcommission.org), an institutional accreditation agency recognized by the U.S. Department of Education.

What is the ranking of Capella University? ›

College Factual ranked Capella University as #145 out of 2,217 colleges and universities in the country on its 2024 Best Colleges list.

What is happening with AMP class action? ›

A settlement has been reached with AMP Limited in the AMP shareholder class action, for the sum of $110 million inclusive of costs. On 14 November 2023, the Supreme Court of New South Wales approved the settlement and appointed Maurice Blackburn as Administrator of the Settlement Distribution Scheme.

Did Zara hit with $5 m lawsuit over bait and switch pricing? ›

Zara hit with $5M lawsuit over 'bait-and-switch' pricing

An American customer says the fast-fashion retailer, which prices in Euros even in the U.S., charges far more than the going currency exchange rate.

What happened with Big Fish lawsuit? ›

It was also the subject of a class action lawsuit over its app Big Fish Casino, resulting in a settlement of $155 million after a federal appeals court ruled that it constituted illegal online gambling.

What happened to the chicken class action lawsuit? ›

Latest settlement in poultry price-fixing suit brings recovery to $284 million. CHICAGO — A class of direct purchasers agreed to a $75 million settlement with two poultry processors involved in a consolidated antitrust lawsuit for allegedly conspiring to fix prices of US broiler chicken. House of Raeford Farms Inc.

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