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LOUISVILLE, Ky. (AP) — A for-profit Kentucky-based college involved in multiple lawsuits could have to pay $1.2 million to former students based on a tentative settlement with the state's attorney general's office.
The proposed agreement calls for Daymar College to pay $1.4 million to the Kentucky attorney general's office, which would keep $200,000 in legal fees, and split the rest among students who attended the school in the five years ending in July 2011, The Courier-Journal (http://cjky.it/1KYHTTG) reported.
The tentative deal and consent decree is confidential, but the newspaper obtained a copy and confirmed the terms. The amount that each student would receive is not disclosed in the proposal.
According to the newspaper, there are 413 private plaintiffs, but the proposed deal covers all Kentucky students who were enrolled during that period.
The proposed agreement and consent decree must be approved by a Daviess Circuit Court judge.
In a joint statement issued Saturday, the attorney general's office and Daymar's lawyer, Kenyon Meyer, said a settlement hasn't been reached.
The attorney general's office sued Daymar in 2011, alleging that it used deceptive tactics and cheated students on textbook sales, federal financial aid and the quality of their educations.
Daymar College, which once had nine campuses in the state but now has four, was founded in 1963 in Owensboro. The college closed its Louisville campus last year.
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