Law Schools, Lawsuit of the Day

Lawsuit of the Day: Some Inspiration for Loyola 2L?

Law schools and lawsuits go together like peanut butter and jelly. When vicious infighting involves lawyers and law students, it’s only a matter of time before someone takes the matter to court. See, e.g., Ave Maria.
But at least Ave Maria is accredited. When the law school in question isn’t even accredited, is it still transfixing in that car-wreck sort of way? Or is it just too pathetic to bear watching?
Read about litigation involving the American Justice School of Law, after the jump.
American Justice School of Law Above the Law blog.jpg

From the AP:

The students of a private law school have filed a $120 million class action lawsuit against the school’s administration, claiming the school is being mismanaged and that accreditation is unlikely.

Students at the American Justice School of Law filed the lawsuit Nov. 17 in U.S. District Court.

The suit claims the school’s top two administrators have engaged in criminal activity that includes racketeering, conspiracy and abuse of their offices “to enrich themselves at the expense of the students.”

If Loyola 2L were the plaintiff, the claim of enrichment would be based on collection of tuition payments. But the allegations here are different:

The suit claims [school officials and shareholders] worked together to delay distribution of student loans for living expenses so they could invest the money and earn interest. It also claims they applied for student loans up to $20,000 without students’ knowledge.

The suit says the students are being harmed because they’ve taken out large loans to cover the cost of the school, but that receiving a law degree from the school is remote because it has not been accredited by the American Bar Association.

The school applied for accreditation over the summer but was denied.

If they want to win accreditation, they might want to do something about that name. It can’t help your application if your law school sounds like it should be a program on Fox.
Update: The law school is now defunct and has filed for bankruptcy. See here (item #2).
Students sue law school [AP]
Students Accuse Law School of Mismanagement, Racketeering [ABA Journal]
Law Students Sue American Justice School of Law for “Racketeering”, Seek $120 Million in Civil Damages [Blogonaut]

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