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On September 27, 2011 it was announced that the Office of the Attorney General of Kentucky has filed a consumer protection lawsuit against National College of Kentucky, Inc. over allegations that the for-profit school misrepresented job placement numbers. This marks the third lawsuit General Conway has filed as part of his ongoing investigation of the for-profit college industry. National College operates six Kentucky campuses in Lexington, Louisville, Florence, Pikeville, Richmond and Danville.
The three-count complaint filed in Fayette Circuit Court alleges that National College violated the Kentucky Consumer Protection Act by making false, misleading and deceptive disclosures regarding the rate at which its students were able to obtain employment in their field of study.
The lawsuit follows efforts by National College to block the Attorney General's investigation. National filed a lawsuit in Franklin Circuit Court in January of 2011 claiming that the investigation by the Office of the Attorney General was not supported by sufficient evidence of wrongdoing. Circuit Judge Philip Shepherd ruled in the Attorney General's favor finding it is "in the public interest that an investigation should be made to ascertain whether (the plaintiff) in fact has engaged in, is engaging in or is about to engage in, any act or practice declared to be unlawful by KRS 367.110 to 367.300." National College has appealed that ruling to the Kentucky Court of Appeals, where the matter is pending.
For more information please visit www.ag.ky.gov.
On December 4, 2013, the Franklin Circuit Court ordered National College to pay a civil penalty of $1,000 per day, beginning on July 31, 2013 and continuing until National fully responds to a subpoena issued by the Office of the Attorney General. To date, that amounts to $126,000 in fines. In addition to this penalty, the court ordered National's attorneys to pay $10,000 to the Office of the Attorney General, after the court determined that National College has "repeatedly abused the legal system to obstruct a valid investigation by the Attorney General."
The action followed nearly three years of litigation concerning a civil subpoena issued to National College in December 2010 by the Attorney General pursuant to an investigation of some for-profit colleges operating in the commonwealth under the Kentucky Consumer Protection Act. National refused to respond to the subpoena and instead filed suit to block the Attorney General's investigation.