ZOVIO Announces Resolution of Massachusetts Inquiry

Rhea-AI Summary

Zovio, Inc. (Nasdaq: ZVO) announced that it has resolved an inquiry by the Massachusetts Attorney General's Office with an Assurance of Discontinuance, focusing on alleged violations of state consumer protection laws related to the former Ashford University. After a seven-year investigation, Zovio will pay $295,120 and cease collection of certain student balances for Massachusetts residents between 2011 and 2014. Zovio denies wrongdoing, emphasizing the decision aims to end ongoing legal issues and allow a focus on student success.

Positive

• Zovio resolved a lengthy legal inquiry with no admission of wrongdoing.
• The resolution allows Zovio to refocus on its core business and support current students.

Negative

• Zovio must pay $295,120 to the Massachusetts Attorney General.
• The inquiry highlights past operational issues at Ashford University that could impact reputation.

CHANDLER, Ariz., July 1, 2021 /PRNewswire/ -- Zovio, Inc. (Nasdaq: ZVO) an education technology services company that partners with higher education institutions, announced today it has agreed to resolve an inquiry by the Massachusetts Attorney General's Office through an Assurance of Discontinuance ("AOD").  Zovio cooperated fully with the Attorney General's inquiry, which focused on alleged violations of the Massachusetts consumer protection laws.

Following a seven-year investigation, of its former Ashford University, the AOD alleges that 1) Ashford unfairly imposed a one-time student technology fee that wasn't refunded to students who withdrew after six weeks of enrollment and 2) failed to disclose certain information, which if provided to students, may have influenced the prospective students not to choose to enroll.

In 2014, Ashford University made the decision, to cease online operations in Massachusetts and not recruit or enroll new students in the State.  Zovio and Ashford University deny the allegations made in the AOD and stand behind its commitment, adherence and compliance with all consumer protection laws. Most importantly, the AOD does not constitute an admission or finding of wrongdoing by Zovio nor any non-compliance with any state or federal law, rule or regulation.

The AOD requires Zovio to pay $295,120 to the Attorney General and cease to collect previously written off balances owe to Ashford University by students who enrolled in Ashford and were Massachusetts residents between 2011 – 2014.

Vickie Schray, Zovio's Chief External Affairs Officer, said: "Zovio is pleased to put this matter behind us.  While there was no wrongdoing, we made the decision to resolve the investigation to end the protracted legal matter and stop the dated accusations that harm our proud alumni and partners allowing us to focus on helping today's students succeed."

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 and TutorMe, 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:
Alanna Vitucci
alanna.vitucci@zovio.com
858.668.2586 x11636

 

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SOURCE Zovio

FAQ

What did Zovio announce on July 1, 2021?

Zovio announced the resolution of an inquiry by the Massachusetts Attorney General's Office related to its former Ashford University.

What is the total amount Zovio has to pay as part of the resolution?

Zovio will pay $295,120 to the Massachusetts Attorney General.

What are the allegations made against Zovio concerning Ashford University?

The allegations include unfair fees imposed on students and failure to disclose certain information that may have affected enrollment decisions.

Did Zovio admit to any wrongdoing in the Assurance of Discontinuance?

No, Zovio denies any wrongdoing and states that the AOD does not constitute an admission of guilt.

How does this resolution affect Zovio's operations?

The resolution allows Zovio to focus on its educational services and support for students without the distraction of ongoing legal issues.