Zovio Announces Filing of Appeal in California Case

Rhea-AI Summary

Zovio (Nasdaq: ZVO), an education technology services company, has announced its filing of an appeal against a March 2022 ruling by the California Superior Court. The court awarded penalties to the California Attorney General, which Zovio deems excessive and based on a flawed statistical analysis of a mere 126 phone calls. The company argues that the penalties are disproportionate and failed to consider its financial standing. Zovio remains committed to its business strategy while appealing the decision.

Positive

• Zovio continues to pursue appeal, aiming to overturn penalties deemed excessive.
• Company remains focused on serving clients and enhancing student outcomes.

Negative

• Ruling may result in substantial financial penalties impacting profitability.
• Legal challenges may divert attention from business operations.

Ed Tech company expresses disappointment with flawed ruling and will continue to pursue justice.

CHANDLER, Ariz., June 10, 2022 /PRNewswire/ -- (Nasdaq: ZVO) Zovio, an education technology services company that partners with higher education institutions and employers, announced today it has filed a notice of appeal of the March 2022 decision of the Superior Court of the State of California, County of San Diego awarding statutory penalties in favor of the California Attorney General. 

Zovio is appealing because it believes the trial court's decision is flawed and the penalties ordered by the court are excessive. The court's assessed penalty amounts were based on a questionable statistical extrapolation of a scant 126 phone calls from millions of calls that were made. The court also failed to make any findings on Zovio's net worth, and we believe the penalties awarded are grossly disproportionate and excessive under both statutory and constitutional standards. 

"While we work to ensure the truth about our record is brought to light, Zovio continues to move forward with our plans to turnaround the company and maintain our focus on serving our clients and their students," said Vickie Schray, Zovio's Chief External Affairs Officer.

About Zovio

Zovio (Nasdaq: ZVO) is an education technology services company that partners with higher education institutions and employers to deliver innovative, personalized solutions to help learners and leaders achieve their aspirations. The Zovio network, including Fullstack Academy, leverages its core strengths to solve priority market needs through education technology services. Using proprietary advanced data analytics, Zovio identifies the most meaningful ways to enhance the learner experience and deliver strong outcomes for higher education institutions, employers, and learners. Zovio's purpose is to help everyone be in a class of their own. For more information, visit www.zovio.com.

Contact: Vickie Schray
vickie.schray@zovio.com

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SOURCE Zovio

FAQ

Why is Zovio appealing the court decision from March 2022?

Zovio is appealing because it believes the ruling is flawed, with excessive penalties based on a limited analysis of 126 calls.

What are the implications of the California court ruling for Zovio's stock?

The court ruling could have financial implications for Zovio, potentially affecting its stock performance due to imposed penalties.

When was the appeal filed by Zovio regarding the California case?

Zovio filed the appeal on June 10, 2022, shortly after the March 2022 court decision.

What does Zovio intend to achieve with the appeal?

Zovio aims to overturn what it considers excessive penalties and clarify its financial standing.