ITT Technical Institutes Shutdown
After being in business for fifty years and being plagued with legal issues, ITT Educational Services, one of the largest operators of for-profit technical schools, ended operations at all of its ITT Technical Institutes. The decision came two weeks after the Education Department said it would no longer be allowed to enroll new students, who rely on federal loans and grants, award raises, pay bonuses or make severance payments to its executives without government approval. The Company's public shares sank to their lowest level. The Company is now facing a lawsuit from its laid-off employees for failing to give them federal law WARN Act required 60 days notice. The Company faced numerous lawsuits brought by shareholders, whistelblowers and students regarding its false promises of career prospects after completing its classes. Could this be signaling the end of the "for profit" schools for good. Click here to read more.