Moody's Investors Service said this week that a class action filed against 12 law schools last week could endanger those schools' financial positions, since they rely overwhelmingly on tuition revenue, and a lawsuit alleging that a school inflated graduation and employment statistics is not a strong selling point for attracting students. "The lawsuits are credit negative for the law schools given the potential for reputational damage leading to application and enrollment declines that would pressure tuition revenue," Moody's analyst Emily Schwarz wrote in the ratings agency's weekly credit outlook.
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