You may recall that back in 2011, before all of the law school litigation came into being, the California Culinary Academy (CCA) was hit with a multi-million dollar class action lawsuit filed by its graduates. The allegations contained therein — misleading job data, high tuition, and difficulty finding jobs after graduation — were very, very similar to those found in the law school lawsuits we revel in covering. Unlike the law schools that are currently under fire, the CCA offered to settle the case for $40 million, and that settlement was approved and entered as a final judgment this summer.
While the only law school lawsuit that’s come anywhere close to CCA’s status has been Alaburda v. Thomas Jefferson School of Law — currently in discovery, where all sorts of interesting stuff has been unearthed — law school plaintiffs may have another avenue to explore, thanks to yet another lawsuit that’s been filed by CCA graduates. This time, the bitter would-be cooks are out for blood against the very company that funded their failed culinary education.
That’s right, Sallie Mae is being sued for handing out private loans with “credit-card interest rates” like candy — really expensive, life-ruining candy. When will law school graduates do the same thing?
The school has filed two documents in response to Alaburda’s complaint. We’ve uploaded their demurrer and their motion to strike. They are not long; you should flip through them.
Thomas Jefferson makes a solid defense of itself. But in the process of trying to quash Alaburda’s lawsuit, the school offers some pretty damning admissions that seem to support Alaburda’s underlying moral, if not legal, point…
For the most part, I’ve just been happy that the lawsuit against Thomas Jefferson School of Law, over the school’s allegedly misleading employment statistics, exists. It’s not about winning or losing; it’s about raising awareness of the disingenuous way law schools go about filling up their classes.
Of course, anytime somebody says “it’s not about winning or losing,” you can best believe that person expects to lose. I’ve been operating under the assumption that Anna Alaburda, the woman suing TJSL, would get her butt kicked all over the courthouse.
But maybe I am wrong to give up hope for a victory so quickly. Karen Sloan of the National Law Journal has managed to find a couple of lawyers who believe law schools could be in big trouble…
We mentioned this news last week, but judging from the slew of emails we’ve received about it, many of you want to discuss it at greater length. So let’s talk about it: the class action lawsuit recently filed against Thomas Jefferson School of Law by a 2008 honors graduate of TJSL, Anna Alaburda, alleging that the San Diego-based law school commits fraud, by using misleading post-graduation employment and salary data to attract new students.
The complaint in Alaburda v. TJSL contains counts for fraud, negligent misrepresentation, and violations of various California statutes (including laws against unfair business practices and false advertising). Plaintiff Anna Alaburda claims that she racked up more than $150,000 in student loans and can’t find decent legal employment, even though she graduated with honors from TJSL, passed the California bar exam, and sent more than 150 résumés to law firms. She now does document review on a project-by-project basis.
Alaburda’s lawsuit seeks compensatory damages “believed to be in excess of $50,000,000,” punitive damages, and injunctive relief, to stop TJSL from continuing its allegedly unlawful conduct. Alaburda seeks to represent a class consisting of “[a]ll persons who attended TJSL within the statutory period” — a group estimated to contain more than 2,300 individuals.
Let’s take a closer look at this lawsuit — filed by partner Brian Procel of Miller Barondess LLP, a Boalt Hall grad and former Quinn Emanuel associate, incidentally — and consider its possible implications for legal education….
* Kesha’s publicist really needs to talk to Kesha’s lawyers about filing lawsuits that make Kesha Ke$ha look lame. [Thomson Reuters]
* You don’t really think you’re going to get a law school to roll over and pay $40 million to snookered students like a cooking school would? Crappy law schools might not be training great lawyers, but they can certainly afford to hire some. [Inside Scoop SF]
* How to subpoena information put on Facebook, or as I like to call it: “How to ruin it for everybody.” [An Associate's Mind]
* “A less gilded future”: an overview from The Economist of the state of the legal economy. [The Economist]
* Chief Judge Kozinski isn’t the only one who loved the new movie Atlas Shrugged. [Dealbreaker]
* Monica Goodling gets a public reprimand by the Virginia state bar. In other completely pointless actions, I just high-fived a Mexican for Cinco de Mayo. [Virginia Lawyers Weekly]
* Speaking of which, I’ve had too many tequila shots today to get hyped up about the Confederate flag. [WSJ Law Blog]
* Seriously guys, take the hint, it’s Cinco de Mayo — it’s okay to sneak out from work and have a drink with friends… assuming you still have friends. Here are some fun facts and music to get you in the mood. [Christian Science Monitor]
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: