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Investigation by MA AG Concludes With No Finding of Wrongdoing by Kaplan

Jul. 30, 2015

FORT LAUDERDALE, FL, July 30, 2015—Kaplan, Inc. today announced that it has agreed to resolve a four-year old investigation of its former Career Institute campus in Boston’s Kenmore Square with the Massachusetts Attorney General’s Office. Kaplan emphatically maintains that its actions were compliant and in the best interests of students, who were well-served by the institution. Graduates of its allied medical programs took jobs in numerous organizations; some with such well-respected Boston institutions as Boston Children’s Hospital, Brigham and Woman’s Hospital, Boston Medical Center and Harvard Vanguard.

Importantly, there was no finding of wrongdoing by Kaplan and this was reflected in the agreement with the Attorney General. Further, the settlement terms specify that no part of the Kaplan payment “is or shall be considered a penalty or fine.”

Kaplan made the decision to resolve the investigation due to the high cost of protracted litigation. “Sadly, in the world of business today, it is often less damaging to settle such a matter even when there is no wrongdoing,” said Janice Block, Kaplan’s Chief Legal and Administrative Officer.

Kaplan has maintained that it consistently acted in accordance with its accreditor’s rules. In addition, the Accrediting Commission of Career Schools and Colleges (ACCSC) conducted site examinations in 2009 and 2011 and found high rates of satisfaction among Kaplan students. Kaplan has not experienced any claim by any student in Massachusetts.

Melissa Mack, Kaplan’s Chief Communications Officer, said, “We appreciate the Attorney General’s willingness to work with us on this matter. While we made the decision to settle, we also feel it is important to stand by Kaplan’s compliance efforts, the quality of work of our people and the commitment we have to our students and their success.”

This resolution, formally called an Assurance of Discontinuance, reflects the fact that Kaplan and the Attorney General’s Office agreed to end this with no findings of wrongdoing or further action to be taken by either side. Over the last several years, the Attorney General’s Office has been conducting a civil investigation of recruitment and educational practices of for-profit schools in Massachusetts. The investigation has resulted in consent judgments with certain of these institutions. However, Kaplan’s agreement with the Attorney General is not a consent judgment and not an admission of any violation of law.

Kaplan’s Career Institute in Kenmore Square closed in 2012 as enrollment trends changed and demand was insufficient for its program offerings at the time.

About Kaplan

Kaplan is a subsidiary of Graham Holdings Company (NYSE: GHC).  For more information, please visit www.kaplan.com.

Media Contacts:

Mark Harrad, Kaplan, Inc. 212-974-6231 mark.harrad@kaplan.com

Stephen White, Kaplan Higher and Professional Education 954-515-4124 stwhite@kaplan.edu

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