Please Be Aware -
The situation with Career Education Corporation (AIU Online), just seems to be getting worse. Quite recently, the stock (CECO stock symbol) fell approximately 25% to close at about 18.60 a share, the lowest it's ever been (it was up over $90.00 a share at one time). CEC still has a significant number of lawsuits to deal with, many of which are wrongful termination, sexual harrassment, and the nonpayment of overtime.
Quite recently, the company was supposed to meet to discuss settlement for the overtime lawsuit in regard to AIU employees, which has been ongoing for about 3 years. Approximately a 36 hours before the settlement hearing, the lawyers for CEC went to the judge handling the case and had the settlement conference postponed or dismissed. The case is being handled by Robin Potter and Associates, located in Chicago, IL.
As time passes, all eyes will be continually focused on the Southern Association of Colleges and Schools (SACS). AIU Online is due to have its accreditation reviewed by SACS in December to determine if the school warrants having its probationary status lifted. My opinion as to whether or not they will get it back - Unknown, it is very hard to predict. As the time draws closer to the review, I have no doubt that CEC will be doing everything possible to get the probationary status removed.
However, I have my doubts. Over the last 2-3 years, the government and other agencies have received so many complaints from former students and employees. Therefore, the decision to lift the status may be a simple "no" because there has been so much pressure upon the government to sanction the school. The decision to lift the probationary status is similiar to deciding to let Charles Manson out of prison. Even though Mr. Manson has been eligible for parole for many years, its just not going to happen. If they do not get off of probation while they still have regional accreditation, my guess is that the regional accreditation they will eventually be revoked.
With the number of online schools competing for business with AIU online (CEC) and all of the negative publicity, it is likely that the financial fall for AIU Online (CEC) is just the beginning. I recall being interviewed in the Spring of 2004 by federal investigators from the Dept. Of Education and the Postal Service. If that was happening then, the heat must really be on CEC now - I wouldn't be surprised if AIU Online was shut down.
AIU Online/CEC deserves exactly what it gets. I welcome your replies.
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