The state of Oregon is suing Apollo Group Inc. of Arizona, the parent company of University of Phoenix, to recover $10 million the state claims it lost from misleading financial statements.
Oregon Treasurer Ted Wheeler and Attorney General John Kroger said Monday they have filed a securities fraud lawsuit claiming Apollo Group deceived investors about company revenue between 2007 and 2010.
Wheeler and Kroger said the allegations in the complaint were also the subject of an investigation by the U.S. Securities and Exchange Commission.
The company allegedly did not follow proper steps when dealing with federal student loans, and improperly canceled loans and left students on the hook financially for classes they did not take.
There are four University of Phoenix sites in Oregon.