Class-action lawsuit against for-profit Vista College seeks tuition refunds for abrupt closure

Higher Ed Dive

Natalie Schwartz
October 15, 2021
Dive Brief: 
  • Dozens of Vista College students who were enrolled at one of the chain’s Texas campuses when the for-profit institution abruptly closed earlier this month have joined a proposed class-action lawsuit filed this week against the institution’s parent company and top officials.
  • The lawsuit alleges that Vista College’s owners made misrepresentations to boost enrollment, didn’t deliver promised education services or provide tuition refunds, and failed to set up plans to have students finish their education elsewhere. It says those actions constitute a breach of contract and fiduciary duty, fraud, misrepresentation, violations of Texas consumer protection law and unjust enrichment. It seeks monetary relief totaling more than $1 million, including for tuition refunds and out-of-pocket expenses.
  • Ronda Racca, who was enrolled in the cosmetology program at Vista’s Beaumont location, is listed as the initial plaintiff in the lawsuit, which has not yet been granted class-action status. Racca is also suing a private equity firm that has a majority stake in the organization.