Press Releases

Kaplan Resolves Legal Case in San Antonio With No Finding of Liability

Jan. 5, 2015

Fort Lauderdale, FL — (January 5, 2015) — Kaplan, Inc. announced today that it has fully resolved a 2012 false claims case brought against its Kaplan College campuses in Texas. The settlement between Kaplan and the U.S. Attorney’s Office for the Western District of Texas, the U.S. Department of Education and Leslie Coleman, the “relator” or plaintiff, after extensive review found no liability or wrongdoing at Kaplan Colleges in the state.

“To avoid the expense of protracted litigation, we chose to settle this complaint,” said Janice Block, Kaplan’s Executive Vice President and Chief Legal and Administrative Officer, noting that the government’s investigation of Ms. Coleman’s allegations did not encounter any evidence of harm to Kaplan students. “We have always maintained the allegations contained in this lawsuit were untrue,” said Ms. Block.

Ms. Coleman, a former Kaplan employee, alleged that students who received Title IV financial aid to attend the medical assistant program at its two San Antonio campuses were taught by unqualified instructors. Despite no finding of a lack of legal compliance, Kaplan has agreed to make refunds limited to students enrolled in classes taught by two teachers during the five-year time period at issue. The refunds are only for the portion of the students’ tuition attributable to those classes. Over 80% of the settlement money will go to the 289 students involved or their lenders, to be applied against outstanding student loan balances.

Kaplan, Inc. (www.kaplan.com):

Kaplan, Inc. is a leading international provider of educational and career services for individuals, schools, and businesses. Kaplan serves students of all ages through a wide array of offerings including higher education, test preparation, professional training, and program for kids in grades K through 12. Kaplan is a subsidiary of Graham Holdings Company (NYSE: GHC) and its largest division.

Media Contacts:

Mark Harrad, Kaplan, Inc.

Stephen White, Kaplan Higher Education Group

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