Decker College in Louisville, Kentucky, already under federal and state investigation, has been sued by a laid-off financial aid officer who says the school owes her $2,000 for work performed and benefits and who is seeking class-action status for her lawsuit.
Lisa Totten, 26, of Louisville, said she has borrowed more than $600 from her parents since being laid off Sept. 6, then sold possessions at a yard sale to repay them.
The lawsuit filed in Jefferson County Circuit Court named the private, for-profit trade school and five executives, including William Weld, a former governor of Massachusetts who now runs a New York investment firm, who until recently was the school's chief executive officer.
Decker has acknowledged laying off about 500 employees in Louisville and elsewhere around the country. The school announced on its Web site that it is "temporarily closed, effective immediately."
The suit accuses the school and five executives of breach of contract, violation of the state's wage and hour laws and "unjust enrichment" by laying off employees without paying for work previously performed.
Decker's parent company, Compass Educational Holdings, and two affiliated companies are also named in the suit. Besides Weld, the lawsuit names Gerald Woodcox and Jeffrey Woodcox.
A Decker official has described the Woodcoxes, of Louisville, as primary owners of the school, and Weld as a part owner.
In October 2005, three former employees petitioned a federal court to declare Decker bankrupt. And 36 former Decker employees who worked at a call center in Bowling Green sued the school last month. They claim they were laid off in August without receiving pay for work performed.
Decker is under investigation by the FBI and the U.S. Department of Education's Office of Inspector General for possible violations of federal law, including student loan fraud, wire fraud, conspiracy to commit fraud and making false statements to the federal government. It also is being investigated by Attorney General Greg Stumbo's office and the Kentucky Board for Proprietary Education.
The Proof of Claim must be in by April 10th, 2006. If you're part of the class action lawsuit filed against Decker, you should get the form in the mail.