Lawsuits and Investigations
In recent years Westwood College has been the subject of controversy related to a series of lawsuits and some students' inability to transfer credits to other colleges and universities. In May 2009, Westwood settled a federal lawsuit over misrepresentation of its graduation statistics for $7 million, without admitting wrongdoing.
Westwood faced a class action arbitration filed by the firm James, Hoyer, Newcomer, Smiljanich & Yanchunis in 2009, challenging its admissions and financial aid practices. The suit against Westwood was dismissed because a judge found that it did not warrant class action status, but the court is allowing students to bring individual claims before the court. The Hoyer firm's use of social media to connect with Westwood students was reported in The Wall Street Journal, which also reported that Westwood filed a suit against James Hoyer, alleging defamation through "new media Internet weapons."
In 2010, Westwood College faced further regulatory difficulties in Texas, Wisconsin, and Colorado. The Texas Workforce Commission took steps to revoke the licenses of Westwood's three Texas campuses due to concerns raised in a federal General Accounting Office investigation, but in early 2011 gave the school conditional approval. In Wisconsin, the Wisconsin Educational Approval Board ordered Westwood to stop enrolling students in its online college in late 2010, but reversed that directive early in 2011.
The Colorado Attorney General's office reached a settlement with the college in 2012, following a two-year investigation. As part of the agreement, the college did not admit any liability and agreed to pay the state $2 million in penalties, restitution and attorneys fees and costs. Westwood also will credit another $2.5 million in restitution directly to students who financed their tuition with the school’s institutional financing program.
In 2011, the Veterans Administration disqualified three Westwood College Campuses from the GI Bill Program. The VA took this step after finding, "erroneous, deceptive, and misleading advertising and enrollment practices at these institutions." In late 2011, Westwood stopped enrolling students in their Texas campuses.
On January 18, 2012 Illinois Attorney General, Lisa Madigan, filed a lawsuit citing misleading job opportunities for its criminal justice program.
On its website, Westwood has responded to many of the allegations against it. Regarding credit transfer problems, Westwood acknowledges that in most cases its credits will not transfer to other colleges or universities.
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