The federal consumer watchdog agency sued for-profit college chain Corinthian Colleges on Tuesday over an alleged predatory lending scheme, saying the company routinely deceived students and used illegal debt-collection tactics.
The company's shares plunged 30 percent after the announcement. Click here for the latest price.
The Consumer Financial Protection Bureau said Corinthian—which operates Everest, Heald and WyoTech schools—lured thousands of students to take out private loans to cover tuition costs by inflating job placement rates and paying employers to temporarily hire their graduates. The CFPB is seeking $500 million in student-relief aid.