City Attorney of San Francisco Settles with EDMC

June 18, 2014

San Francisco's city attorney, Dennis Herrera, on Tuesday announced a $4.4 million settlement with Education Management Corporation (EDMC). Herrera's office had been investigating the student-recruiting tactics of the California Art Institutes, which EDMC owns. The for-profit chain did not admit wrongdoing as part of the settlement, according to a corporate filing. It will pay roughly $2.5 million in scholarships for past and present students at the local Art Institutes. The rest of the settlement amount will cover Herrera's costs for the investigation. The company also reached a voluntary agreement to provide more public information about its programs, such as job placement and graduation rates.

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