An investigation on behalf of former and current students of Capella Education Company (NASDAQ:CPLA) and its Capella University, was announced in connection with the report by the Government Accountability Office with the title "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices."

If you are a former or current student of Capella Education Company (NASDAQ:CPLA) and its Capella University, who experienced any fraud, wrongdoing, deceptive and questionable marketing practices, or had any school loan issues, , or if you have information relating to the investigation including also former employees or whistleblowers, you have options and you should contact the Shareholders Foundation, Inc by email [email protected] or call +1(858) 779 - 1554


Capella Education Company is an online postsecondary education services company. It operates through its wholly owned subsidiary, Capella University. Capella Education Company faces an investor lawsuit filed on behalf of those who purchased common stock of Capella Education (CPLA) between February 16, 2010 and August 13, 2010 against Capella Education Company over alleged violations of Federal Securities Laws. The lawsuit followed a report by the U.S. Government Accountability Office with the title “Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices” which detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff.

On August 4, 2010, the Senate Health, Education, Labor, and Pensions Committee conducted a hearing on for-profit education firms, where Government Accountability Office representative, George Kutz, presented the findings of report GAO-10-948T, "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices." The report detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff. According to this GAO study, the college personnel at schools owned by Education Management Corp. may have encouraged applicants to falsify their financial aid forms to qualify for federal aid and pressured applicants to sign a contract for enrollment prior to allowing them to speak to a financial advisor.

According to the investigation by a law firm former and current students of Strayer Education, Inc. (NASDAQ:STRA) and its Strayer University may have material information concerning those allegations and may be eligible to file a complaint for allegedly misleading students.

Also whistleblowers may according to the law firm be able to assist or file their own complaint. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide “original information” leading to a successful SEC enforcement, so the law firm. Whistleblowers may remain completely anonymous and work with the SEC through an attorney. Under the new law, so the investigation, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC.

Recently the Attorney General of Florida Bill McCollum launched an investigation into some for-profit education companies. On October 19, 2010, the Wall Street Journal reported that Florida Attorney General's office has launched an investigation into five for-profit colleges, including four publicly traded schools, seeking information on potential misrepresentations in financial aid, recruitment and other areas. The state is reportedly looking into allegations at Washington Post Co.'s (WPO) Kaplan Inc.--including its Kaplan University, Kaplan Educational Centers and Kaplan College units--and at Education Management Corp.'s (EDMC) Argosy University, Apollo Group Inc.'s (APOL) University of Phoenix; Corinthian Colleges Inc.'s (COCO) Everest College and privately held MedVance Institute.

Those who are former or current student of Capella Education Company (NASDAQ:CPLA) and its Capella University, who experienced any fraud, wrongdoing, deceptive and questionable marketing practices, or had any school loan issues, , or those who have information relating to the investigation including also former employees or whistleblowers, have options and should contact the Shareholders Foundation, Inc by email [email protected] or call +1(858) 779 - 1554

This school says they are a real school. But takes $1.000's in loans and aid and only fells a lot of the kids. I owe around $6.000 for this school and worked very hard but was only gaven F's..Its a scam..!!!

Stay as far away from this poor excuse of a school. Unfortunately, as other individuals have complained, Crapella will hound and promise you anything to get you to enroll and when you do, it is all about money!! I completed my doctorate and when I received their "diploma" it felt like a slap in the face. It was a piece of common cardboard with and looked like a 5th grader printed it off their home computer. When I called to complain I was offered a "Capella Medallion" for my concerns!!! They are all about "show me the money" and could give a damn about you if you raise a stink. Stay far, far away from Crapella.

I contacted Capella University about Ph.D. classes in business, and was hard-sold by their 'counselors' who called me and pressured me to enroll. The per credit cost I was originally quoted was increased after my first term. They also did not mention the additional costs of attending required residential colloguia, which add a hug amount to the cost of a Capella education. The travel, plus a week off from work, plus Capella's fees of $1, 350 for each week make these more expensive than traveling to Europe. I tried to withdraw from my classes, and was told I had withdrawn. Later, I got a bill for about $1, 800 from Capella, even though I did not participate in the classes and thought they had been dropped. I have complained to the Federal Trade Commission and the Washington State Attorney General about this, and Capella refuses to recognize the error.

They suggested that I borrow the money from one of their lenders and pay them that way. I insisted that I was unwilling to pay for services I never received. Capella still insists I pay. Caveat Emptor!