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Federal Court Denies Dream Center Executives’ Motions to Dismiss in Class Action Lawsuit Brought By Former Art Institute Students

FOR IMMEDIATE RELEASE:
August 6, 2021

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Federal Court Denies Dream Center Executives’ Motions to Dismiss in Class Action Lawsuit Brought By Former Art Institute Students

In another victory for defrauded Art Institute students, a federal judge issued an order yesterday denying motions to dismiss filed by three former Dream Center executives. The ruling also granted a motion by students to compel further deposition testimony from Chris Richardson, one of those former executives. The Court previously denied a separate motion to dismiss filed by the Dream Center Foundation, the ultimate parent of the for-profit school chain.

“Yesterday’s ruling allowing the Dream Center lawsuit to move forward against former senior executives is an important win for defrauded students and another step towards holding executives accountable for misconduct,” said Student Defense Vice President Alex Elson.

The complaint in Dunagan v. Illinois Institute of Art details a litany of dishonest and illegal practices by Dream Center executives after the company acquired the Illinois Institute of Art in 2018. After the for-profit school lost its accreditation in January 2018, the Dream Center and its executives misled students about the loss of accreditation for approximately half a year.

You can read more about the case on the Student Defense website.

Student Defense has worked diligently on compiling research and making policy recommendations to better hold for-profits and their executives accountable. You can read more about these efforts in the 100 Day Docket, a Student Defense policy initiative that outlines a number of regulatory and policy changes the Biden Administration could enact without the need for federal legislation.